Germany’s Spending Gamble: Chancellor Merz’s Bold Investment to Revive Economy and Defend Europe

The Financial Times documentary “Germany’s Spending Gamble” documents Chancellor Friedrich Merz’s historic 2025 move to loosen the country’s strict constitutional debt brake, unlocking €500 billion for urgent investments in infrastructure and defense. Facing decades of austerity, crumbling schools, roads, and transport, alongside growing external security threats, Germany is betting on large-scale public spending to modernize its economy and military capabilities. This decisive break from fiscal conservatism aims to stimulate growth, enhance state effectiveness, and secure Europe against geopolitical uncertainties. However, the success of this gamble depends on overcoming bureaucratic hurdles, resource constraints, demographic pressures, and managing political opposition, especially from far-right factions ready to capitalize on any failures. Germany’s spending pivot may reshape both its own future and Europe’s strategic and economic landscape. For more, see the full documentary on the Financial Times YouTube-Channel.