A provision would exempt defence spending above 1% of GDP from debt brake rules, enabling Germany to increase military spending without limit. View on euronews

The euro surged for the second consecutive trading day amid the EU’s plan to boost defence spending by hundreds of billion euros. View on euronews

The parties hoping to form Germany's next government have agreed to create a 500 billion euro infrastructure fund and overhaul borrowing rules, a tectonic spending shift that jolted markets on Wednesday on hopes of reviving Europe's largest economy.

Not so long ago, European corporate bosses were worried about missing out on the “Trump bump”. U.S. President Donald Trump’s November victory briefly supercharged the long-running outperformance of the world’s largest economy and stock market,

Germany's conservative election winner Friedrich Merz came a step closer Saturday towards forming a government which he has pledged will revive Europe's top economy and its armed forces with massive new spending.

Berlin has acknowledged that its budget rules are no match for the double danger facing Germany: A significant threat to its security, and also a serious risk of economic collapse.

Conservative leader Friedrich Merz has claimed victory in German elections, leaving the AfD’s Alice Weidel in second place, and Olaf Scholz out of the job.

"A really big bazooka," wrote Berenberg economist Holger Schmieding, commenting on the German measures. "These proposals for an immediate loosening of Germany’s fiscal rules will likely be enacted. They are a fiscal sea change for Germany."

German elections set to swing towards conservative values in midst of terror attacks and a crumbling economy dependent on Russian gas.

The two political parties expected to form the next German government have agreed to significantly loosen the country’s constitutional restriction on deficits, enabling 1 trillion euros ($1.08 trillion) or more in new borrowing and spending on defense and infrastructure.

CDU leader Friedrich Merz has revealed plans for a new €500 billion special fund aimed at boosting infrastructure and defence spending. Just over a week after his victory in the federal ...