Content
@
https://warpcast.com/~/channel/hunt
0 reply
0 recast
0 reaction
Project7
@project7
Germany’s bold new spending move is making waves. I feel that this may lead the ECB's QE (Quantitative Easing) approach to bring up EU-wide spending increases. Here’s a few points: 1. €500 billion borrowed for infrastructure over 12 years, plus defense spending above 1% of GDP exempted from the old 0.35% cap. 2. This isn’t quantitative easing - the ECB isn’t buying these bonds yet, leaving Germany to face the markets solo. 3. Bond yields jumped to 2.9%, debt-to-GDP could hit 90-100%, and inflation might climb past 2.3% in 2025. 4. It could lift GDP from 1.1% to 2.1% by 2026. However, higher borrowing costs could crowd out private sector cash or shake investor confidence in Germany’s fiscal stability. Will it pay off or pile on debt for Germany? What do you think? https://www.rte.ie/news/europe/2025/0318/1502675-germany-defence/
2 replies
0 recast
6 reactions
Mudge 🎩Ⓜ️
@mudge
Germany has one of the lowest debt-to-GDP in Europe. I don't think that dept-to-GDP could hit 90-100%. This would only be the case when Germany would not be able to grow it's GDP. Let's say they spent their borrowed money smart and can achieve at least 1% higher annual GDP than without the 500 billion borrowed, then their debt-to-GDP would only increase to 70-80% within the next 10 years. And in the following 10 years they would still have the same ratio as today. The crux is that they have to achieve economic growth and to avoid spending the money on social welfare.
1 reply
0 recast
1 reaction
Project7
@project7
Oh i see. Yeah I think Germany is one of the lowest leve lof debt-to-GDP countries so far. But I guess they're trying to expand a lot of their spending all of sudden. 7777 $hunt
0 reply
0 recast
1 reaction
