Germany has announced plans to borrow approximately 20% more than initially projected in the upcoming months. This decision aims to support a significant rise in expenditures, including a €46 billion ($53 billion) tax relief package. The increased borrowing is part of Chancellor Friedrich Merz’s strategy to rejuvenate the country’s sluggish economy and strengthen its military capabilities. Additionally, the cabinet has approved the annual budget along with a mid-term financial plan that outlines around €500 billion in net new borrowing through 2029.
— news from Bloomberg
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Germany to Sell More Debt to Fund Growth and Defense Plans
Germany will borrow about a fifth more than planned in the coming months to help fund a surge in spending, while a deal to secure a €46 billion ($53 billion) package of tax breaks highlighted how debt needs are set to grow. n nThe bump in third-quarter issuance and the tax measures are part of efforts by Chancellor Friedrich Merz ’s ruling coalition to revive Germany’s stagnating economy and bolster the armed forcesBloomberg Terminal. The cabinet also approved this year’s budget and the government’s mid-term finance plan, which includes net new borrowing of about €500 billion through 2029.