EUR/USD holds strong above 1.0900 – BBH
|EUR/USD is trading firmer above 1.0900. Germany’s CDU/CSU and SPD coalition are in high-stakes negotiations with the Green party to get the draft debt package passed in the current parliament, BBH FX analysts report.
Coalition needs the support of the Green party for a constitutional amendment
"Germany's new parliament is set to convene by March 25. As part of a counterproposal, the Greens want to raise the threshold for defense spending exemptions from debt rules to 1.5% of GDP compared to 1.0% in the current plan. The CDU/CSU and SPD coalition need the support of the Green party to have the required two-thirds majority for a constitutional amendment."
"As a background, the German government could invest as much as €1 trillion over the next decade. The fiscal package introduced last week includes €500 billion for infrastructure spending and a special measure to amend the constitution to exempt defense spending above 1% of GDP from the constitutional debt brake."
"To appreciate the magnitude of this proposal, Germany invested €1.5 trillion over two decades following the reunification of East and West Germany."
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.