25 March 2025 | Euro

Reuters: Friedrich Merz's policies face growing criticism in Germany

Reuters: Friedrich Merz's policies face growing criticism in Germany

A bold move by incoming German Chancellor Friedrich Merz to relax long-standing restrictions on government spending has drawn international acclaim, but sparked domestic backlash. This was reported by Reuters.

An INSA Institute poll found that 73% of German voters, including 44% of those supporting the Christian Democratic Union (CDU), were dissatisfied with the official's decisions. Reuters-consulted experts noted that Merz has largely failed to deliver on his campaign promises concerning the "debt brake".

Germany's incoming chancellor announced a dramatic shift in federal spending policy just nine days after the election victory. Last week, parliament approved the proposed changes, which aim to stimulate economic growth and expand defense expenditures, according to the news agency.

However, both German citizens and CDU supporters now worry they may bear the brunt of financing these new expenditures. Reuters analysts suggest Friedrich Merz's fiscal measures could potentially undermine social benefits and pension systems.

Elena Dorokhina MarketCheese
Period: 02.06.2025 Expectation: 750 pips
Buying Brent crude with $107 in view
Today at 11:26 AM 20
Period: 02.06.2026 Expectation: 590 pips
Invest in AUDUSD with 0.72160 target ahead of Australia’s strong inflation report
Today at 10:48 AM 14
Period: 26.07.2026 Expectation: 4500 pips
Buying Tesla stock up to $473
Today at 09:06 AM 15
Period: 02.06.2026 Expectation: 1620 pips
Sell Bitcoin with $75,380 target as institutional demand dries up
Today at 07:15 AM 15
Period: 30.06.2026 Expectation: 800 pips
Buy SPX from $7,500 support
Yesterday at 11:30 AM 66
Period: 30.06.2026 Expectation: 7000 pips
Selling Bitcoin if US inflation surges
Yesterday at 11:30 AM 65
Go to forecasts