19 March | Euro

German parliament passed debt rule reform

German parliament passed debt rule reform

Reuters reports that the outgoing parliament of Germany on Tuesday passed the bill, proposing a massive rise in government borrowing and changes of the country’s debt rules. 

The conservatives led by the future German Chancellor Friedrich Merz and the Social Democrats have proposed changing borrowing rules and creating a fund of €500 billion ($546 billion) to develop the country's infrastructure. Such steps are aimed at strengthening defense and boosting GDP growth in Germany, which is Europe's largest economy.

To secure the necessary majority of two-thirds in the German parliament, the conservatives and the Social Democrats had to include last minute demands of the Greens party in their reform plan, Reuters says.

According to the agency, the legislation will now go to the Bundesrat, which represents 16 states of Germany. The vote on the bill is to take place on Friday. Officials of the conservatives and Social Democrats said they expect the legislation to be passed.

Elena Dorokhina MarketCheese
Period: 08.07.2025 Expectation: 1500 pips
EURUSD rally faces potential correction toward 1.165
Yesterday at 06:46 AM 47
Period: 09.07.2025 Expectation: 1400 pips
USDCAD declines amid US dollar weakness and improving Canadian trade prospects
Yesterday at 06:07 AM 34
Period: 08.07.2025 Expectation: 3000 pips
Buying Bitcoin during consolidation before July growth wave with 110,000 target
01 July 2025 60
Period: 07.07.2025 Expectation: 2000 pips
Renewed tensions between Musk and Trump weigh on Tesla shares
01 July 2025 50
Period: 07.07.2025 Expectation: 1900 pips
SPX may retreat to 5,980 following all-time high
30 June 2025 56
Gold sell
Period: 04.07.2025 Expectation: 5000 pips
Gold's six-month uptrend is under threat as prices test 3250 level
30 June 2025 175
Go to forecasts