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Germany Faces Backlash Over Massive Borrowing and Generational Equity Concerns

Union-SPD coalition's unprecedented debt package raises fears of disproportionate burdens on younger generations as pension equalization plan stalls.

Unions-Kanzlerkandidat Friedrich Merz (CDU, l.), SPD-Chef Lars Klingbeil
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Overview

  • Germany's outgoing Bundestag approved record-high loans to fund defense, infrastructure, and climate initiatives, sparking debates about long-term generational impacts.
  • A YouGov survey reveals that 61% of Germans believe the new borrowing will negatively affect younger generations, fueling public discontent.
  • The Federal Court of Auditors warns that the debt package risks permanently weakening Germany's constitutional debt brake, with interest costs projected to rise to €37 billion by 2035.
  • Finance Minister Wolfgang Schäuble has blocked funding for a €7.5 billion East-West pension equalization plan, labeling it a low-priority measure, leaving its future uncertain.
  • Critics, including the Greens and AfD, accuse the coalition of ignoring youth interests, while young people express frustration over being sidelined in policy decisions.