What is Germany's 'debt brake?' In Germany, the federal government and the 16 states (Länder) are obliged to balance their budgets and are practically prohibited from taking out extra loans. No other G7 country has such strict limits on new borrowing.

Friedrich Merz has vowed to prioritize European unity and the continent's security as it grapples with the new Trump administration and Russia's war on Ukraine​.

Merz expressed concern over changing relations with Washington under the Trump administration, emphasizing the need for gradual independence from the U.S.