Insights March 6, 2025

Fiscal expansion in Germany

Authors | Dr. Ulrich Stephan - Chief Investment Officer Germany, Dr. Dirk Steffen - Chief Investment Officer EMEA, Dr. Konrad Aigner - Senior Investment Officer Europe

Key Takeaways

  • An agreement to reform the debt brake with quite large fiscal policy measures has been announced in Germany by the CDU/CSU and SPD.
  • Approximate calculations show that despite the significant funding volumes, the deficit and debt increases seem to be manageable.
  • All measures are currently only proposals and require approval in parliament with a 2/3 majority. Despite these uncertainties we are optimistic that a compromise can be found in order to implement the fiscal policy programmes.