Germany’s ambitious stimulus measures

Geography: Europe
Sector: All Sectors / General Economy

Read More: Germany's stimulus measures

Germany has recently announced ambitious stimulus measures to support its economy. The FT reports on 4 June 2020 that the announced measures include EUR 353 billion emergency aid, EUR 820 billion loan guarantees and EUR 130 billion worth of tax cuts. They are expected to be funded through increased government bond issues. After years of fiscal prudence, Germany certainly has a lot of room to increase its public debt. The question is how more indebted countries, with high borrowing costs, could follow Germany’s example and support their economies.