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Germany: A big budget for big challenges - NOMURA
Breaking news
Germany: A big budget for big challenges - NOMURA
New
2025.06.26 21:16
2025.06.26 21:16
2025.06.26 21:16
Germany's new government approved a big budget this week, with a sizeable increase in infrastructure and defence spending planned over the coming years, NOMURA's economists report.
Berlin's spending surge aims to reboot economic momentum
"The new budget is likely to meaningfully improve the economic trajectory. But in the near-term challenges from overseas (tariffs) and from within (demographics) will likely still weigh on growth."
"Moreover, trend growth may take time to respond positively after years of fiscal neglect. Still, with plentiful spare capacity, we don't think fiscal largesse will end up generating significant inflation, nor therefore derail further ECB rate cuts."
Last updated
: 2025.06.26
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2025.06.26 22:36Disclaimer:
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