Merz defends high debt for new jobs and infrastructure!

Merz defends high debt for new jobs and infrastructure!

In the first general debate about the budget under the leadership of Chancellor Friedrich Merz, which took place in the Bundestag on July 9, 2025, the federal government's high level of debt was the focus of the discussions. Merz defended the controversial financial decisions with the aim of preserving jobs and creating new jobs. While he responded to objections from the opposition, he also had to face criticism of stagnating market developments. Loud FAZ the Chancellor reiterated that doing nothing was not a better alternative and raised his voice for significant investment to be acquired with the 2026 Budget.

A big issue was also the non-reduced electricity tax for private households, which Merz defended despite massive criticism from the Greens, AfD and the Left. Yesterday, Salice Weidel, the AfD parliamentary group leader, described the black-red coalition as the “final stage of a shattered government” and accused Merz of lacking the ability to act. He rejected the allegations and described them as “blanket and undifferentiated denigration”.

Budget and debt taking

As part of his budget speech, Merz announced that a special fund of 500 billion euros would be used to strengthen infrastructure and support climate protection. These measures are based on the possibility of raising new debt up to a limit within the framework of the debt brake, which is also considered necessary to enable future-oriented investments. Loud bpb The debt brake, which has been anchored in the Basic Law since 2009, is repeatedly used as an argumentative sword in political discourse and is often criticized because it could slow down investments.

Despite the high level of debt, Merz reiterated that savings and structural reforms were necessary to stabilize the financial situation. He also emphasized that although the federal government had to take on debt to advance important projects, it needed to be handled responsibly. In this regard, there was also an exchange with Federality, which has often been discussed in recent months.

The reactions of the opposition

The opposing voices from the opposition did not take long to arrive. Green party leader Katharina Dröge sharply criticized Merz and accused him of “declaring bankruptcy” when it comes to climate protection. The SPD also spoke up: parliamentary group leader Matthias Miersch called for a ban on the AfD, although the Union does not see a majority in favor of such a procedure. Merz, on the other hand, supported the SPD's tough course towards migration and is planning further reforms for citizens' money, which will be put on the agenda in the autumn.

The general debate is not just a debate about numbers, but rather represents a wide range of topics and challenges for the federal government. According to Merz, support in the economy seems to be improving, but the state games and accusations from both sides still promise a lot of material for discussion.

So the look into the future over the coming months is being watched with excitement, while the question remains as to how Merz and his team will overcome the pressing challenges.