Germany: Adopting a fiscal expansionary stance
|-
In March, after an unprecedented six months of talks, Chancellor Angela Merkel succeeded in prolonging the grand coalition between CDU/CSU and SPD.
-
Even though the economy is operating close to potential, fiscal policy will be very expansionary in the coming years.
-
The positive elements in the programme are the investment in digital infrastructure and education.
-
However, new pension promises risk compromising the government budget's stability in the longer term.
-
On the eurozone, the grand coalition pleads for a return to the old concepts as best recipe for stability.
-
Even though Chancellor Merkel subscribes to the need of strengthening the eurozone, the policies to achieve this remain rather vague or fall back on old concepts. No major changes are expected in this area.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.