Friedrich Merz, likely the next chancellor of Germany, has announced significant new government spending focused on defense and climate initiatives, positioning Germany to alter its fiscal policy. This follows concerns about reduced U.S. security guarantees and aims to revitalize a coalition government amid rising populism.

In Germany's recent federal elections, the CDU led by Friedrich Merz gained significant support, while the far-right AfD made historic gains. Merz has expressed intentions to achieve independence from the U.S. amid concerns over Trump's administration's indifference towards Europe.