· 1d · on MSN
CDU's Friedrich Merz secures billion-euro deal for Germany’s military and infrastructure
Germany’s Friedrich Merz strikes ‘game-changing’ deal to boost defence spending
Friedrich Merz, Germany’s chancellor-in-waiting, has agreed a deal with his likely coalition partner to inject hundreds of billions in extra funding into the country’s military and infrastructure, marking a “sea-change” in the nation’s conservative approach to borrowing.
Germany's Merz proposes overhaul of debt-brake system to boost defence, infrastructure spending
Germany's political parties hoping to form the next government have agreed to loosen the country's strict "debt brake" system which constitutionally limits new government borrowing to 0.35% of GDP. Conservative leader Friedrich Merz says extraordinary efforts are needed to boost the country's defence capabilities given the current security uncertainty.
The parties hoping to form Germany's next government have agreed to create a 500 billion euro infrastructure fund and overhaul borrowing rules, a tectonic spending shift that jolted markets on Wednesday on hopes of reviving Europe's largest economy.
I want to make it very clear: in view of the threats to our freedom and peace on our continent, the following must now also apply to our defence: ‘Whatever it takes’.” Friedrich Merz, Germany’s incoming chancellor,
Berlin has acknowledged that its budget rules are no match for the double danger facing Germany: A significant threat to its security, and also a serious risk of economic collapse.
"A really big bazooka," wrote Berenberg economist Holger Schmieding, commenting on the German measures. "These proposals for an immediate loosening of Germany’s fiscal rules will likely be enacted. They are a fiscal sea change for Germany."
The prospective partners in Germany’s next government say they will seek to loosen the nation’s rules on running up debt to allow for higher defense spending
Conservative leader Friedrich Merz has claimed victory in German elections, leaving the AfD’s Alice Weidel in second place, and Olaf Scholz out of the job.
EUR/USD is hovering around 1.08 after a seismic shift in European yields, but let’s not get ahead. Currently, the pair is only 1-1.5% overvalued across a spectrum of market models —not nearly stretched enough to justify fading this move, especially with two major risk events on deck: the ECB today and U.S. payrolls tomorrow.
German elections set to swing towards conservative values in midst of terror attacks and a crumbling economy dependent on Russian gas.
Center-right election winner Friedrich Merz, who is trying to form a coalition government with the center-left Social Democrats of outgoing Chancellor Olaf Scholz, said the two sides will propose exem
1don MSN
The two political parties expected to form the next German government have agreed to significantly loosen the country’s constitutional restriction on deficits, enabling 1 trillion euros ($1.08 trillion) or more in new borrowing and spending on defense and infrastructure.
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