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.

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

Europe must seek to “achieve independence” from the United States, Germany’s likely next chancellor Friedrich Merz said after his opposition conservatives won elections on Sunday, in a vote that also saw surging support for the far-right.