A recent study challenges the long-held perception of German austerity, revealing a significant shift in public opinion regarding fiscal policy and government debt. Conducted by the Düsseldorf Institute for Macroeconomics and Business Cycle Research (IMK) and previewed by “Süddeutsche Zeitung”, the findings indicate a growing acceptance of deviations from the strict debt brake, particularly concerning investments in defense, infrastructure and digital networks.
The study, based on a survey of 2,700 citizens, indicates that 41% “strongly” or “somewhat” support the exceptions to the debt brake implemented after the last federal election, while another 22% maintain a neutral stance. This marks a considerable departure from previous surveys where a majority often voiced opposition to looser debt rules.
The changing attitude appears deeply rooted in a reassessment of geopolitical realities and economic pressures. The creation of a €500 billion special fund for modernizing rail, roads, bridges and digital infrastructure enjoys even broader approval, with 51% expressing explicit support and another 16% remaining neutral. Likewise, financing increased defense spending garners a majority, with 49% in favor and 20% neutral.
However, the shift isn’t uniform across the political spectrum. Support for easing the debt brake is notably lower among supporters of the Alternative for Germany (AfD), where 67% express disapproval and the “Bürger in Wut” (BSW), with 60% opposed. This highlights a significant ideological divide, reflecting differing perspectives on the role of government and economic priorities. Conversely, even within the conservative Christian Democratic Union (CDU), a decisive majority (80%) endorse the reform, providing a strong base for Chancellor Friedrich Merz’s recent policy direction.
Interestingly, the shift seems to contradict the arguments frequently touted by the more fiscally conservative wing of the CDU, suggesting a broader public recognition that the traditional emphasis on “schwarze Null” (zero deficits) is increasingly untenable in the face of evolving global challenges.
The IMK study authors, Jan Behringer and Lukas Endres, argue that the evolving public sentiment “indicates that many people view the current economic and geopolitical challenges as so significant that higher government debt is considered acceptable”. This is particularly striking, considering that a substantial 62% of respondents acknowledge that the expanded investment will demonstrably increase Germany’s debt burden – suggesting a nuanced public willing to trade a degree of fiscal conservatism for perceived national security and economic modernization.
The findings provide a fascinating glimpse into a shifting national mindset, challenging long-held assumptions and potentially reshaping the contours of German political and economic discourse.
