ICYMI - Fitch says Germany's AAA credit rating could face longer run pressure

On Tuesday the German parliament approved a significant borrowing increase to fund infrastructure and security spending while easing borrowing restrictions.

Germany is expected to spend €900 billion - €1 trillion over the next ten years, over 20% of GDP. Fitch projects the fiscal deficit to grow to 4-4.5% of GDP by 2027, up from 2.6% in 2023, pushing debt levels towards 70% of GDP—the highest among AAA-rated nations.

Fitch says that Germany's AAA credit rating could face pressure in the longer run if the spending is not not offset by consolidation measures, or doesn't lead to a lasting improvement in growth,

More here (may be gated).

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Adam had more from Fitch, here:

• Fitch: White House has started a global trade war that will reduce US and world growth