Merz doubles down on opposition to ‘Draghi-style’ common debt proposal

Published on 15/05/2026 - 11:40 GMT+2

German Chancellor Friedrich Merz said connected Thursday that associated indebtedness was not an enactment to concern the European economy, speaking astatine a ceremonial awarding erstwhile European Central Bank President Mario Draghi the Charlemagne Prize.

In his code astatine Aachen Cathedral, Merz echoed Draghi’s telephone to boost European competitiveness, but differences stay implicit however to concern it.

"Some present judge we tin evade this achy task by taking connected caller debt, European debt, by financing regular spending done debt. Germany cannot travel this way for law reasons alone, and, ladies and gentlemen, we besides request resources for aboriginal crises," Merz said connected Thursday.

The German Chancellor had already expressed his absorption to associated borrowing, a connection to concern the bloc’s system that was revived by Draghi successful his 2024 study connected European competitiveness.

In his report, Draghi has called for associated EU borrowing arsenic a indispensable instrumentality to mobilise an further €800 cardinal successful yearly concern if the bloc is to stay globally competitive. Part of the financing would travel from backstage funds, but nationalist concern would besides beryllium needed.

"The world is that excessive indebtedness threatens sovereignty and limits our quality to act. Let maine authorities it frankly: immoderate countries are already spending much connected involvement payments than connected defence owed to their immense debt," the German Chancellor added.

But Merz’s code is acceptable to enactment him astatine likelihood with countries specified arsenic France, Spain, and Greece, which person called for the issuance of caller eurobonds—a signifier of associated European borrowing—to enactment the bloc’s system amid the fallout from the warfare successful the Middle East, including rising vigor prices.

The contented of however to concern the bloc’s system and however to tackle the situation of soaring vigor prices volition beryllium astatine the halfway of discussions surrounding the upcoming EU agelong word fund (2028-2034), successful peculiar during the European Council successful Brussels that volition instrumentality spot connected 18-19 June.

The International Charlemagne Prize has been awarded since 1950 to individuals oregon institutions for their services to Europe and the continent's unity.

Last year, the prize was awarded to European Commission President Ursula von der Leyen.