Germany receives 1 trillion euros ($ 1.1 trillion) in additional funding virtually free after the bond markets responded positively to their “historical” cost, Deutsche Bank AG Chairman Alexander Warndts said.
Now they need to spend money wisely and promote structural reforms to make sure that they remain in this way, Vayrandts said on the panel discussion organized by the Institute of International Finance on Thursday.
Last week, Germany launched hundreds of billions of euros for defense funded, defense and infrastructure costs, ending the decades of tough savings and introducing a new period of spending deficit to raise the largest European economy, the modernization of ripping infrastructure and resumption. Berlin was forced to act after President Donald Trump retreated from US security commitments.
The markets, as a rule, responded positively to the financial shift, which, according to Bloomberg economists, should help strengthen growth across the euro area.
“The market is very accurately supported” the cost package last week accepted the final legislative obstacle, Wynaendts said. “You can even say that we got a trillion euro at no extra costs.”
Wynaendts said a sudden wealth of money is at risk of improper overgrowth after many years of defecting and disorganized procurement systems.
“Will the investment not spend not well?
According to him, Germany should also work on structural reforms to ensure that the debt growth is long, he said.
“We need a reduction in regulation, we need tax reform, we need labor law reform. So there are many things that still need to happen to make these huge investments a complete impact,” Wynandts said. “We don’t have time to waste it.”
Originally this story was presented on Fortune.com
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2025-03-27 19:12:00
Arno Schütze, Bloomberg
