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European markets head for higher open ahead of German debt reform vote

  • On Tuesday, the Bundestag will vote on a bill allowing unprecedented levels of debt for military, infrastructure, and climate protection over the coming years, marking a historic decision for Germany's parliament.
  • The bill, drafted by the CDU/CSU and the SPD, aims to raise €500 billion in debt for infrastructure, with €100 billion allocated to federal states and €300 billion to the federal government.
  • Opposition from the AfD and the Left Party may block the debt package, as both parties hold over one-third of Bundestag seats following the recent election.
  • Economists warn that Germany's national debt may rise from 62% to 90% of GDP, potentially increasing interest expenditures by €250 to €400 billion in the next ten years.
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The Straits Times broke the news in Singapore on Sunday, March 16, 2025.
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