* common EU debt

4. Domestically, the CDU will have to compromise on the Schuldenbremse to advance military and industrial reforms. But, due to the possible constitutional change, the party is unlikely to support a common EU tax, to prevent the AfD from gaining more support from fiscal conservatives.

3. Germany’s fiscal capacity will be at the core of coalition talks—critical if the country wants to increase state capacity. This also impacts the EU, given Germany’s role as a key budget contributor.

2. A new special fund for defense and industry is uncertain, as Linke, BSW, and AfD would likely reject it. While the CDU favors a special fund, SPD, Greens, and Linke would prefer a constitutional amendment, since a special fund wouldn’t allow them to push social policies.

My two cents: 1. If Germany forms a black-red-green coalition (CDU/SPD/Greens) without the FDP but with the BSW in the Bundestag, reforming the debt brake would hinge on the Left Party’s support, putting security policy in a difficult position.

Thanks Jacob for the class! Was very informative, especially for someone from Hungary like me :)))