Junge Union Challenges Merz Government Over Debt Brake Policy, Calls for Fiscal Prudence

The youth wing of Germany's Christian Democratic Union (CDU), known as the Junge Union, has renewed its opposition to proposals to relax the nation's debt brake. This fiscal policy, embedded in the German constitution since 2009, restricts new federal borrowing to a maximum of 0.35 percent of the country's gross domestic product annually. The renewed debate comes ahead of the CDU's upcoming federal party conference and amid significant governmental plans for investment in defense, infrastructure, and security.

In anticipation of the party conference in Stuttgart, Junge Union members have submitted a formal motion urging the CDU to reject any further softening of the debt brake. Their argument centers on the principle of generational equity, emphasizing that loosening borrowing restrictions would place an undue burden on future generations. The motion insists that any review or modernization of the debt brake, as discussed in the coalition agreement between the CDU and SPD, should not result in a further weakening of the rule.

The government has recently proposed large-scale investments that would require changes to the constitution, including expanded spending on defense and a special fund of 500 billion euros for infrastructure improvements. The Junge Union contends that these initiatives conflict with both the CDU's core values and election commitments. They argue that before any new debts are incurred at the federal or state level, it must first be demonstrated that existing debt has been directed towards genuine investment rather than consumption-related expenditures.

The youth organization further calls on the government to ensure that special debts, such as those already approved for defense and infrastructure, are allocated exclusively for future-oriented projects. They warn that any additional relaxation of the debt brake would further undermine party principles and increase long-term financial pressure on younger generations.

According to the Junge Union, the current approach of forming numerous government commissions has led to more borrowing but few tangible reforms. They urge the coalition to prioritize enacting and implementing essential policy changes. Specifically, the group recommends that the commission on the debt brake should provide clear guidance on how approved special debts can be effectively used for investments that benefit future generations.

This is not the first time in the current legislative period that the Junge Union has voiced concerns about government policies potentially compromising generational fairness. Earlier, members of the youth wing expressed reservations about pension policy measures agreed by coalition leaders, fearing similar long-term fiscal implications. Although a compromise was eventually reached in the Bundestag, the debt brake remains a contentious policy dividing the party and its youth organization.

The debt brake was introduced to ensure fiscal responsibility and limit excessive borrowing by future administrations. While the government argues that increased spending is necessary to address pressing national priorities, the Junge Union maintains that strict adherence to the debt brake is essential to safeguard the interests of younger and future citizens.