Friedrich Merz has floated the idea of borrowing the savings of citizens to fund public infrastructure
A senior German opposition figure has suggested “mobilizing” private savings to fund public infrastructure. Friedrich Merz, the nominee for chancellor from the conservative coalition comprising the Christian Democratic Union (CDU) and its Bavarian sister party, the Christian Social Union (CSU), argued that such a measure would help Berlin avoid accruing more debt.
Germany’s Ministry for Economic Affairs last week released a forecast showing GDP declining by 0.2% in 2024, a sharp downgrade from the previously projected 0.3% expansion. This would mark the second straight year of recession for the EU’s economic powerhouse.
Germany’s prized industrial sector has been struggling over the past few years, owing to a combination of headwinds, such as weak demand in key export markets, a shortage of qualified workers, and the adverse effects of no…