POLICY COMPASS

Germany’s “Whatever It Takes” Moment

By Lāsma Kokina

10 March 2025

In this paper we discuss:

• Germany’s political landscape after the early federal elections;
• Coalition formation and party negotiations;
• Germany’s future strategic direction in defence, fiscal policy, and international relations; and
• Merz's decision to approve a EUR 500bn investment package and a constitutional reform to weaken the debt break in the current parliament.

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Download PDF: German Elections and Fiscal Expansion - March 2025

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