Debt-Fueled Dreams of German Greatness: Where Does the Plan of Friedrich Merz Lead?

2025. 04. 02.
MKI Perspective – Written by Philip Pilkington & Csaba Stefán

Germany is currently undergoing a period of rapid political change. After years of fiscal conservatism and aversion to militarization, the German government now looks set to throw away these post-1945 norms. But what does it hope to gain? And have they thought through the consequences? From the outside looking in, Germany appears to be reacting to events that they did not expect in a panic—a recipe for disaster, especially when the reactions are as deep and profound as what is currently going on in Germany. Germany’s current path could put the country at deep risk. They may come out the other side with little in the way of a military, a plethora of misallocated public money, and collapsing trust in German institutions on the part of the public.

The full analysis is available here.

 

Cover source: AP Photo