Friedrich Merz, the incoming chancellor, persuaded lawmakers to let him spend more. Infrastructure will be the first order of business.
Even before presenting a plan on Wednesday for his government, Germany’s likely next chancellor, Friedrich Merz, persuaded Parliament to bypass constitutional limits to let him spend more on Germany’s military.
This led observers to point out that any new German tank would have a hard time crossing a German bridge.
The country once vaunted for its industrial prowess, high-speed autobahn and endless efficiency is falling apart.
Wary of debt, past governments chronically underinvested in infrastructure for decades. But the lifting of Germany’s debt brake, as the constitutional spending limits are known, will allow the new government to borrow 500 billion euros (about $556 billion) for infrastructure over 12 years.
Of that, €200 billion will go to states and a special climate fund. But Mr. Merz’s Christian Democrats and the Social Democratic coalition partners will be able to invest some €150 billion directly on infrastructure projects before their term ends in 2029.