Merz Visits Montenegro as Germany Argues Over How to Pay for Energy and Pension Promises

German politician Friedrich Merz is visiting Montenegro to sound out the prospects of Western Balkan countries joining the European Union (EU). Nine countries want to join the bloc, but the door to new members has been closed for more than a decade. The visit matters because the future of EU enlargement policy depends largely on whether any candidate is actually admitted.

Montenegro as a test case

Politico Europe expert Hans von der Burchard explains why this small country on the Adriatic coast is becoming a litmus test for enlargement policy. In his analysis, a failure of Montenegro's accession would be a satisfaction above all for Russia and China. He also discusses what bitter pill Ukraine may have to swallow.

A fight over money in Berlin

At the same time, a conference of Germany's state premiers in Berlin is seeing a hard distribution battle over energy costs. Hendrik Wüst is demanding billions in connection with the electricity tax, while Markus Söder is putting forward expensive pension plans. The conference begins on the very day of the official tax revenue estimate, so the central question is how these promises can be permanently financed given huge gaps in the budget.

Sebastian Schäfer, the Greens' chief budget spokesman in the Bundestag, says in an interview that he considers the tax-cut plans of the Union (CDU/CSU) unrealistic. He also puts forward a concrete proposal for savings.

These topics are covered by Politico's Berlin Playbook podcast, released every morning from 5 a.m.