Germany’s election results brought good news this week — record turnout and a strong democratic majority in parliament (“‘People’s parties’ hold on to power but their grip is weakened further”, Report, February 25).
But the real test for the incoming coalition will be its approach to economic policy — specifically, the fate of Germany’s constitutional debt brake (Schuldenbremse).
With Europe facing mounting geopolitical and economic pressures, Germany must quickly and decisively invest in infrastructure, energy resilience and technological sovereignty. Yet modifying the debt brake requires a two-thirds parliamentary majority — 420 votes in the Bundestag. Even with the Greens, a CDU/SPD coalition looks like it will fall short, at 413 seats. This makes constitutional reform unlikely, leaving alternative financing mechanisms as the only viable path forward.
One option is the creation of Sondervermögen für Resilienz (special funds for resilience), as Germany did for military spending after Russia’s invasion of Ukraine.
These funds allow critical investments while bypassing strict debt limits. If constitutional reform proves impossible, the new government must act creatively — leveraging special funds or emergency provisions — to ensure its future as an economic and technological leader.
Danijel Višević
General Partner, World Fund,
Former communications adviser to chancellor Angela Merkel,
Berlin, Germany