21 March | Euro

Increase in Germany’s spending raises economic risks across Europe

Increase in Germany’s spending raises economic risks across Europe

Bloomberg reports that Germany's increased government spending is driving up borrowing costs across Europe. The situation is especially perilous for the countries with high national debt, such as Italy and Spain, where bond rates have already climbed more than 30 basis points. 

According to the news agency, investors are concerned that highly indebted nations may struggle to pay interest on the debt. This may result in another European debt crisis similar to the one that occurred more than a decade ago. 

Despite the risks, some experts are optimistic. For example, Lynda Schweitzer of Loomis, Sayles & Company, who holds Spanish, Italian and French bonds, considers a softer fiscal policy to be a potential driver for economic growth. She believes funding infrastructure and other key sectors will help boost GDP growth and thus partially offset the increasing debt load. 

Period: 25.09.2025 Expectation: 200 pips
Buying natural gas with $3.230 target on seasonal demand and technical pullback
Today at 11:11 AM 71
Period: 22.09.2025 Expectation: 10000 pips
ETHUSD set to rise after descending channel breakout
Today at 10:37 AM 61
Brent sell
Period: 30.11.2025 Expectation: 700 pips
Selling Brent crude with target of $60 per barrel
Today at 10:32 AM 52
Gold sell
Period: 31.10.2025 Expectation: 40000 pips
Selling gold after Fed meeting
Today at 09:11 AM 89
Expectation: 1250 pips
Selling USDJPY with 146.450 target while anticipating BoJ rate decision
Today at 06:40 AM 95
Period: 17.09.2025 Expectation: 500 pips
Buying SPX on 0.5% Fed rate cut
Yesterday at 11:38 AM 230
Go to forecasts