Incoming german Chancellor Friedrich Merz has kicked off high-stakes talks with the Social Democrats (SPD), the likely coalition partner, to secure up to €200 billion in fresh defense spending. Sources close to the matter, cited by Bloomberg, reveal that the CDU and SPD are exploring creative ways to sidestep constitutional limits on public debt. One potential maneuver: rushing the funds through the outgoing parliament before the new one takes shape on March 24.

This pivot isn’t a shock. With the U.S. stepping back from bankrolling Ukraine’s war effort, Europe’s power players are scrambling to fill the gap. Germany’s gambit signals a seismic shift—and it’s the continent’s middle class that could end up footing the bill. As budgets tighten and priorities tilt toward military might, the strain on everyday Europeans is set to intensify.