International Reactions to Germany's Planned Suspension of Debt Brake

The recent agreement between the Social Democratic Party (SPD) and the Christian Democratic Union (CDU) to effectively suspend Germany's debt brake marks a significant political shift for both the country and Europe. Media outlets around the world have reacted positively to Germany's commitment to increasing its defense spending, while simultaneously expressing concerns regarding the implications for the stability of the European monetary union.

On March 4, 2025, during exploratory talks, the two parties reached a consensus that would exempt defense expenditures exceeding one percent of the nation's GDP from the debt brake. Friedrich Merz, the likely future Chancellor, has been praised or criticized for recognizing the urgent need for change. This decision has drawn attention from international observers.

United Kingdom
According to the Guardian, the realization of what a potential second Trump presidency could mean for the transatlantic alliance poses significant challenges for European leaders. The article emphasizes the importance of Merz's readiness to take decisive action as a center-right successor to Olaf Scholz. The move to circumvent legal restrictions on national debt is viewed as a seismic shift within Germany's typically cautious political landscape, paving the way for increased defense spending and positioning Germany as a leader in Europe as the continent seeks greater strategic autonomy from the United States.

Czech Republic
The newspaper Hospodarske noviny states that ensuring the security of Europe necessitates a substantial contribution from Germany, the largest and strongest economy in the EU. The article notes that Germany has finally come to terms with the reality that reliance on the United States is no longer tenable, regardless of the current U.S. administration. As long as Germany remains a democratic and constructive partner within the EU, concerns about its military investments appear unfounded.

Italy
In Italy, Corriere della Sera describes the political landscape in Germany post-election as a "Merz revolution." In less than a month, Merz has altered three foundational pillars of German policy, including immigration, European independence from the U.S., and breaking the taboo surrounding national debt with a proposed investment package of one trillion euros in defense and infrastructure. The article suggests that this marks a significant departure from Merz's previous positions.

Spain
The Spanish newspaper El Mundo highlights that Germany's policy shift in defense spending is likely to inspire other European nations and address two critical issues: the need for defense autonomy and increased investment activity within the EU. The article posits that this demonstrates Merz's leadership, responding to the precarious international landscape shaped by changing U.S. policies and suggesting that Europe must strengthen its global standing by ensuring its own security and maintaining a competitive industry.

Switzerland
The Neue Zürcher Zeitung acknowledges the substantial backlog in Germany's military and infrastructure due to years of neglect. While Germany currently maintains a debt-to-GDP ratio of 62.4%, which positions it as a model of fiscal responsibility within the Eurozone, experts warn that this could change, leading to a potential debt ratio of 100% within ten years if current spending plans are enacted. To prevent such outcomes, Merz must exert pressure on both the SPD and his own party to identify areas for budgetary cuts.

United States
The Wall Street Journal raises questions about Germany's ability to rebuild its military amidst a pressing need for financial resources. Merz's proposal indicates a willingness to borrow significant funds for defense, which carries political risks given the German electorate's preference for a balanced budget. However, the agreement's implications for German defense and NATO are viewed positively, signaling a necessity for rearmament acknowledged by the new German government.

Austria
The Austrian publication Der Standard reflects on the legacy of former Chancellor Olaf Scholz, suggesting that he indirectly facilitated the loosening of the debt brake. The new coalition has the potential to invest significantly more than during the previous government, which could lead to improvements in infrastructure and serve as a stimulus for the economy. This shift is framed as a response to years of stagnation, indicating that Germany is ready to take decisive action.