It is pretty much the case here after the announcement yesterday: Germany will set up €500 billion infrastructure fund and a special defense fund
Now it is being reported that Germany is asking the EU to reform its fiscal rules in order to allow for member states to make bigger defense expenditures without breaking budget rules. This according to Bloomberg, citing people familiar with the talks.
This is one headline you’d probably not think of seeing coming into this year. Wild.
I mean, Germany does have the pull of being the backbone of the European economy. Still, this is a big ask as they’re clearly only doing it to fit their agenda now. The optics certainly aren’t all too pretty. Then again, Germany does have one of the lowest debt-to-GDP ratios in the region. So, while other countries might feel a hint of favouritism here, it also does help them out a bit to some extent.
This article was written by Justin Low at www.forexlive.com.
