Politico reported concerns in the EU over Germany's high spending

European governments are concerned about the desire of the future German Chancellor Friedrich Merz to subsidize German industry. This was reported by Politico on March 21.

The governments of the European Union (EU) have expressed concerns that the radical spending plans announced by the future German chancellor will eventually distort the bloc's single market and could give the country an unfair competitive advantage, the newspaper noted.

"We have to be careful when it comes to productive investments in Germany. This means more markets for French companies. But it could worsen the productivity gap between the two countries. We will need to keep up," commented a former French government minister.

According to a diplomat from a southern European country, it is necessary to see which subsidies the new German government will agree to in its final coalition agreement.

"The issue of potential distortions (in the allocation of subsidies by Germany — Ed.) is something that we need to resolve," he said.

Swedish Minister for EU Affairs Jessica Rosenkranz told Politico that she welcomes Germany's increase in defense spending, but "as for state aid, the EU, of course, has rules."

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Alice Weidel, chairman of the Alternative for Germany (AfD) party, said on March 13 that Friedrich Merz, leader of the Christian Democratic Union (CDU), was trying to carry out a "financial coup" in order to increase military spending and help Ukraine.