Germany rejects Draghi’s borrowing plan amid financial tensions

Germany's Finance Minister Christian Lindner firmly rejected Mario Draghi's proposal for increased common borrowing to stimulate private investment, stating that such measures would create significant democratic and fiscal issues. This response came shortly after Draghi's report on the future of EU competitiveness, which suggested that the EU should invest an estimated €800 billion annually until 2030. Lindner emphasized that the real issue lies not in a lack of subsidies but in bureaucratic constraints and a planned economy. He argued that increasing government debt does not guarantee economic growth. Draghi's report also outlined specific investment needs, including €300 billion for the energy sector and €150 billion for transport infrastructure to support electric vehicles. European Commission President Ursula von der Leyen supported Draghi's proposals, suggesting ways to increase EU funding through direct raises and higher contributions from member states. However, Germany's rejection of the borrowing plan highlights ongoing financial tensions within the EU, particularly as member states grapple with differing economic philosophies and priorities.