18 h. ago European markets soar as Germany moves to lift ‘debt brake’ and raise defence spending

Berlin’s ‘big bazooka’ proposal sends industrial stocks surging but fiscal sea change also hikes borrowing costsBusiness live – German debt ‘bazooka’ rallies stocks and euroEuropean financial markets have rallied sharply and German borrowing costs have soared after the country’s prospective leaders announced a historic deal to loosen its “debt brake” rule to boost spending on defence.The yield – in effect the interest rate – on 30-year German government bonds rose by about 25 basis points to 3.08% in its biggest daily increase since October 1998. Continue reading...

Economics

23 h. ago European markets soar as Germany lifts ‘debt brake’ to raise defence spending

Berlin’s ‘big bazooka’ move sends industrial stocks surging but fiscal sea change also hikes borrowing costsBusiness live – German debt ‘bazooka’ rallies stocks and euroEuropean financial markets have rallied sharply and German borrowing costs have soared after the country’s prospective leaders announced a historic deal to loosen its “debt brake” rule to boost spending on defence.The yield – in effect the interest rate – on 30-year German government bonds rose by 16 basis points, after having earlier jumped by as much as 25 basis points to 3.07% in its biggest increase since October 1998. Continue reading...

Economics

24 h. ago German borrowing costs soar by most since 1997 on ‘historic’ debt deal

Investors bet on big boost to growth after agreement to increase funding for military and infrastructure

Economics

25 h. ago German borrowing costs soar by most since 2008 on ‘historic’ debt deal

Investors bet on big boost to growth after agreement to increase funding for military and infrastructure

Economics

27 h. ago German borrowing costs soar after Merz deal to boost military and infrastructure spending

Proposal to relax borrowing rules described as ‘sea change’ for debt issuance

Economics

30 h. ago German borrowing costs soar as Merz moves to ease debt brake

Proposal to relax borrowing rules described as ‘sea change’ for debt issuance

Economics

1 week ago Willingness to ease off ‘debt brake’ may decide the German election

Rule dating from 2009 that limits borrowing looks vulnerable as main political parties promise to revive stalled economyGermany is used to running its economy with the brake on. Ever since the 2008 financial crisis Berlin has sought to burnish a reputation as the world capital of fiscal discipline, with a near-pious aversion to debt and pride in strong government finances.Under a rule known as the “debt brake” – introduced in 2009 by Angela Merkel to show Germany was committed to balancing the books after the banking crash – the federal government is required to limit annual borrowing to 0.35% of GDP. Continue reading...

Politics