Today Angela Merkel has announced a budget designed to save the German economy from the Corona virus and protect thousands of businesses from imminent ruin.
The government is expected to approve new borrowing of €356 billion which is equivalent to nearly 10% of Germany’s GDP. That it is huge and quite unprecedented!
This is a significant change in fiscal policy and a radical departure from German austerity and their aversion to debt.
The Germans can well afford such a policy and so could a few other Nordic Countries too!
Interest rates will rise…
