Merz has come to power in a context of maximum tension. Europe must seek a balance between satisfying the security interests of the United States and defending Ukraine against Putin's dangerous offensives. The new German leader has made clear his intentions regarding Europe. On one hand, Merz seeks to consolidate Germany's presence on the continent and, with it, assume and accept the responsibilities to Europe that it entails, promoting an image of predictability and credibility. On the other hand, he intends to strengthen the bond between the U.S. and Europe in his pursuit of supporting Ukraine.

In order to meet its proposed objectives in Europe, the new administration has focused its attention on two major areas: the military and the economy. The chancellor acknowledged that Berlin's security and influence in the world ultimately depend on its military capability and economic development. Merz is aware of the delicate situation the German economy has experienced due to its stagnation over the past two years, as it experienced a contraction of 0.3% alongside a weak growth in 2024. Referring to the German economy as the "growth engine of Europe," Merz will promote several monetary and fiscal reforms to boost economic growth in Berlin, and thus, in Germany.

Furthermore, Merz's ambitious economic recovery plan also encompasses the military. The German leader has emphasized the importance of increasing defense spending to achieve a new goal set by Trump: allocating 5% of GDP to NATO by 2032. Given the U.S. pressing demands and NATO’s need for a more solid security structure, Merz seeks to transform the German Army into the most powerful conventional army in Europe.

At the same time, Merz has designed a €500 billion special fund to modernize Germany’s infrastructure over the next decade, including some projects supporting military logistics. This fund is made possible by the flexibility of the debt brake, a constitutional provision established to ensure fiscal discipline.

Through an amendment approved by the Bundestag in March 2025, federal states like Berlin can now incur debt up to 0.35% of their regional GDP, while federal military spending exceeding 1% of GDP is excluded from the debt brake’s deficit limits. This reform enables Germany to finance large-scale infrastructure and defense initiatives without compromising its economic stability. Furthermore, it allows for large-scale initiatives such as increased defense investment, which is necessary to address the geopolitical challenges plaguing Europe's borders.

Ultimately, the newly elected German Chancellor has laid the foundation for German domestic and foreign policy. He has demonstrated a fervent commitment to his American and European allies. He not only seeks to guarantee the continent's security, but also to involve Germany in the defining issues of European politics. This, in turn, has been reflected in his meticulous government plan aimed at revitalizing Berlin's sluggish economy and creating a formidable German Army.

• https://www.lanacion.com.ar/el-mundo/alemania-ha-vuelto-merz-anuncio-un-acuerdo-para-el-megaplan-de-rearme-y-reactivacion-economica-nid14032025/?utm_source=chatgpt.com https://www.lanacion.com.ar/el-mundo/alemania-ha-vuelto-merz-anuncio-un-acuerdo-para-el-megaplan-de-rearme-y-reactivacion-economica-nid14032025/?utm_source=chatgpt.com
• https://elpais.com/economia/2025-05-21/la-economia-de-alemania-seguira-estancada-este-ano-pese-a-las-inversiones-masivas-del-gobierno-de-merz.html https://elpais.com/economia/2025-05-21/la-economia-de-alemania-seguira-estancada-este-ano-pese-a-las-inversiones-masivas-del-gobierno-de-merz.html