The Guardian view on Friedrich Merz’s grand coalition: gambling on a new centre ground | Editorial

The deal signed last week between the centre-right CDU and centre-left SPD paves the way for vital investment in Europe's biggest economy

Some years ago, hundreds of German finance ministry staff dressed in black and formed a giant zero to salute their boss, Wolfgang Schauble, as he left office. It was a tribute to Mr Schauble's extreme fiscal conservatism, which had delivered Germany's first balanced budget in the postwar period. Amid resurgent prosperity in the Angela Merkel years, the so-called black zero - symbolising a constitutional prohibition on public debt- had gradually acquired cult status.

As a new administration prepares to take power in Berlin, it seems unlikely that human euro signs will welcome the latest politician to take on MrSchauble's former role. But in dramatic fashion, the spending tapsare set to be turned on. Via a swiftly staged Marchvote in the outgoing Bundestag, debtbrake" dogma was consigned to history by the chancellorelect, Friedrich Merz. The way was thus paved for groundbreaking expenditure on defence, and the overhaul of an economy being left behind in achanged, suddenly menacing world.

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