Merz Rejects EU Debt Expansion as Sovereignty Risk

Addressing the Berlin parliament, Merz dismissed the notion that joint debt issuance serves as a viable mechanism for the continent's financial future. He highlighted a growing structural imbalance, noting that several member nations currently prioritize interest payments on existing debt over critical defense spending. This fiscal strain, he argues, creates a precarious environment where further collective borrowing would only exacerbate national budget vulnerabilities.

This stance puts Berlin in direct opposition to French President Emmanuel Macron, who has championed joint borrowing initiatives. Macron maintains that such measures are essential to provide the capital necessary for the European Union to hold its own against the industrial and economic scale of the United States and China. For now, the disagreement underscores a fundamental clash over whether the bloc should prioritize fiscal autonomy or aggressive, debt-fueled industrial policy.