The reform debt policies would allow higher defense spending and create a €500 billion ($548 billion) infrastructure and climate fund. The proposal, backed by the CDU-CSU and SPD, seeks to exempt defense and infrastructure-related loans from the debt brake, while also granting more flexibility to Germany’s states. A two-thirds majority is required for the package to pass, and the Bundesrat must also approve it on Friday.
Meanwhile Fitch is saying:
Pressure could arise under Germany's AAA rating in a long-term if spending not offset by consolidation or last improvement in growth. This article was written by Greg Michalowski at www.forexlive.com. Read More Details
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