Merz defends investment package – What does Habeck say about it?

Merz defends investment package – What does Habeck say about it?

In the Bundestag, Chancellor Friedrich Merz defended the federal government's investment program. Today, on July 9, 2025, Merz will speak about the measures that were decided at a special meeting in which the Union, SPD and Greens pull together. Despite initial criticism of the investment program from the Union, new paths must be found for Germany's future.

The direction of the broadcaster “phoenix” kept the focus on Vice Chancellor Robert Habeck’s reaction during Merz’s speech. Merz argued vehemently that the new investment package would give the states the opportunity to increase their own debt, which, according to him, was a clear decision for the creation of jobs. However, he warned that this decision would also impose a significant burden on future budgets. “Doing nothing is not a better option!” emphasized Merz, while opposing Alice Weidel from the AfD.

The special fund and the financial conditions

The budget debate also discussed the planned new debt of around 850 billion euros by 2029. Interest expenses are expected to increase from the current 30 billion euros to 62 billion euros. According to the President of the Taxpayers' Association, Reiner Holznagel, this could lead to the additional revenue from taxes, which is expected to rise from 387 billion euros to 424 billion euros, to be "eaten up" by the exploding interest expenses. Critics consider the newly created special fund, from which 55 billion euros will be diverted for modernization, to be a fraud.

The CDU Economic Council General Secretary Wolfgang Steiger has already warned that the additional debt could replace the planned investments in infrastructure, such as the condition of dilapidated roads, outdated railways and bridges in need of renovation. Experts are urgently calling for more transparency and an honest approach to the issues of debt and investments in order to counteract the dilapidated state of the infrastructure.

However, by defending the investment program, Merz has sent clear signals. The ORF reported that the federal government hopes that these measures will be a way out of the financial misery in order to create promising prospects for Germany.

Overall, it remains to be seen whether the decisions made will have the desired effect or whether they simply mask the symptom of a larger economic problem.

For further information you can consult the reports from Focus and News.de be called.