Germany is embarking on an almighty borrowing binge
It is not without risks
THESE DAYS the streets of Berlin run red with the blood of sacred cows. On June 24th Lars Klingbeil, the finance minister, unveiled plans to borrow vast sums for a debt-funded €500bn ($580bn) infrastructure programme and a giant rearmament scheme. The world’s third-largest economy is jettisoning its hard-earned reputation as Europe’s champion of flinty austerity. It is a bold move, and one welcomed by Germany’s allies and the financial markets. But it is not without risks.
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This article appeared in the Europe section of the print edition under the headline “The big borrowing binge”
Europe
June 28th 2025- At a tricky NATO summit, a Trumpian meltdown is averted
- A defence splurge will slow Europe’s deindustrialisation
- Germany is embarking on an almighty borrowing binge
- Ukraine is inching towards robot-on-robot fighting
- A bitcoin scandal is good news for the Czech Donald Trump
- How strongmen mastered the art of dividing Europe
From the June 28th 2025 edition
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