Germany’s Merz proposes overhaul of debt-brake system to boost defence, infrastructure spending

Germany’s political parties hoping to form the next government have agreed to loosen the country’s strict “debt brake” system which constitutionally limits new government borrowing to 0.35% of GDP.  Conservative leader Friedrich Merz says extraordinary efforts are needed to boost the country’s defence capabilities given the current security uncertainty. Plus, a day after imposing 25% tariffs on imports from Canada and Mexico, Donald Trump has agreed to give a one-month exemption to cars.