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Merz's Borrowing Plans Challenged in German Court's Final Stand

BERLIN, March 17 (Reuters) - Chancellor-to-be Friedrich Merz's ambitious plans to implement a large-scale stimulus package were met with last-minute legal challenges from opposition parties, as announced on Monday prior to a parliamentary vote.

The far-right Alternative for Germany contested the vote in the constitutional court, arguing that the Bundestag had not allowed enough time for external experts to review the plans that bolstered the euro and stock markets the previous week.

Independent lawmaker Joana Cotar revealed she had lodged a complaint to derail the vote, while three members of the pro-business Free Democrats (FDP) also intend to submit petitions, as reported by the dpa news agency.

FDP finance expert Florian Toncar stated to dpa, "The federal government has so far been unable to answer very simple and fundamental questions on this."

Merz aims to push a €500 billion ($544 billion) infrastructure fund and significant changes to debt regulations through the current parliament in an attempt to revive sluggish growth and increase defense spending in Europe's largest economy.

Last week, Merz secured crucial support from the Greens party to pass the measures in the current parliament, fearing potential obstruction in the upcoming Bundestag as of March 25, due to an increased presence of far-right and far-left lawmakers.

The parliamentary budget committee reviewed the plans on Sunday, which had faced prior legal challenges from the AfD and the Left party the week before.

Both Merz's conservatives and the Social Democrats (SPD), engaged in coalition talks after last month's elections, are promoting the measures jointly.

Additionally, SPD co-leader Saskia Esken mentioned in an interview with ZDF on Monday that the party's leadership plans to discuss with individual lawmakers within their own ranks who might be uncertain before the vote on Tuesday.

Merz cannot afford to lose many supporters on Tuesday, as his coalition of conservatives, SPD, and Greens requires a two-thirds majority to pass constitutional amendments, with only a narrow margin of 30 votes.

He defended the urgent need to push the package through the current parliament, citing recent shifts in U.S. policy, cautioning that a hostile Russia and an unreliable U.S. could leave the continent vulnerable.

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