Tag #Fiscal Policy

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faz.net

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Mar 18, 19:11

German Bundestag Approves €500 Billion Financial Package

The German Bundestag approved a €500 billion financial package for infrastructure and defense, passing with 513 votes in favor and 207 against, despite criticism from the AfD who warned of negative impacts on the Euro; the Bundesrat will vote on Friday.

German Bundestag Approves €500 Billion Financial Package

The German Bundestag approved a €500 billion financial package for infrastructure and defense, passing with 513 votes in favor and 207 against, despite criticism from the AfD who warned of negative impacts on the Euro; the Bundesrat will vote on Friday.

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How did different political parties react to the Bundestag's decision, and what are their underlying concerns?

This vote marks a significant shift in German fiscal policy, authorizing substantial new debt for long-term investments. The approval, achieved despite concerns from the FDP and AfD, reflects the priorities of the governing coalition and necessitates further approval from the Bundesrat. The success of this vote suggests a strong unified front between the Union, SPD, and Greens.

tr.euronews.com

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Mar 18, 22:10

Germany Approves Record Borrowing for Defense and Infrastructure

The German parliament passed a bill amending the country's fiscal rules to allow record government borrowing for defense and infrastructure, totaling €500 billion over the next decade, after a tense debate involving the CDU, SPD, and Greens; it requires approval from the Bundesrat.

Germany Approves Record Borrowing for Defense and Infrastructure

The German parliament passed a bill amending the country's fiscal rules to allow record government borrowing for defense and infrastructure, totaling €500 billion over the next decade, after a tense debate involving the CDU, SPD, and Greens; it requires approval from the Bundesrat.

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Industry, Innovation, and Infrastructure

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What factors influenced the German government's decision to relax its constitutional debt limits?

This decision marks a departure from decades of fiscal conservatism, enabling tens of billions of euros in spending. The bill exempts defense spending above 1% of Germany's GDP from the "debt brake", and creates a €500 billion fund for infrastructure projects over the next decade. This is in response to a changing security environment and reflects a shift in government priorities.

taz.de

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Mar 18, 10:15

Germany's €500 Billion Investment Plan: Hope Amidst Economic Slump

Germany's economy remains weak in March, but a planned €500 billion investment fund for infrastructure and climate neutrality offers potential for future growth, although concerns exist about its long-term effects and the need for structural reforms.

Germany's €500 Billion Investment Plan: Hope Amidst Economic Slump

Germany's economy remains weak in March, but a planned €500 billion investment fund for infrastructure and climate neutrality offers potential for future growth, although concerns exist about its long-term effects and the need for structural reforms.

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Decent Work and Economic Growth

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What are the underlying causes of Germany's economic stagnation, and how do the proposed investments aim to address these?

Economists attribute Germany's weak economy partly to insufficient public investment. The construction sector, for example, is struggling. The €500 billion fund aims to address this, with potential for significant growth in the medium to long term. However, realizing this potential requires avoiding misallocation of funds and implementing structural reforms.",

dw.com

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Mar 17, 04:08

Merz Announces Cost Cuts Despite €500 Billion Spending Plan

CDU/CSU leader Friedrich Merz announced that despite his proposed €500 billion financial package, Germany's next government will need to cut costs across all government levels; this comes after the package gained approval from the Bundestag's Budget Committee and faces legal challenges.

Merz Announces Cost Cuts Despite €500 Billion Spending Plan

CDU/CSU leader Friedrich Merz announced that despite his proposed €500 billion financial package, Germany's next government will need to cut costs across all government levels; this comes after the package gained approval from the Bundestag's Budget Committee and faces legal challenges.

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How do the legal challenges to the financial package impact the coalition negotiations and the timeline for forming a new German government?

Merz's announcement highlights the inherent tensions within the proposed financial package: a significant increase in spending coupled with the necessity for future austerity. The package's passage, while seemingly assured by the Budget Committee's vote and the Greens' anticipated support, is contested legally, raising questions about its long-term fiscal implications.

nytimes.com

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Mar 17, 13:15

GOP Explores Budget Trick to Mask $4 Trillion Tax Cut Cost

Republican lawmakers are considering a budgeting strategy to make a $4 trillion tax cut extension appear cost-free by assuming current policies continue indefinitely, bypassing budget reconciliation rules; this approach is opposed by many experts.

GOP Explores Budget Trick to Mask $4 Trillion Tax Cut Cost

Republican lawmakers are considering a budgeting strategy to make a $4 trillion tax cut extension appear cost-free by assuming current policies continue indefinitely, bypassing budget reconciliation rules; this approach is opposed by many experts.

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What is the core mechanism Republicans are using to make a $4 trillion tax cut appear budget-neutral, and what are the immediate procedural implications?

Republicans in Congress are considering a budgeting strategy to make a $4 trillion tax cut appear costless. This involves assuming current policies, including expiring tax cuts, extend indefinitely, thus making the extension appear to cost $0 instead of $4 trillion. This tactic wouldn't change the bill's actual impact on deficits but could help bypass budget reconciliation rules.

kathimerini.gr

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Mar 17, 13:15

Mitsotakis Announces Tax Cuts or Increased Investment Following Moody's Upgrade

Greek Prime Minister Kyriakos Mitsotakis visited the Ministry of Finance on Monday, following a Moody's upgrade to investment grade, announcing plans to return increased government revenue to citizens via tax cuts or public investment while maintaining fiscal stability and emphasizing the continued ...

Mitsotakis Announces Tax Cuts or Increased Investment Following Moody's Upgrade

Greek Prime Minister Kyriakos Mitsotakis visited the Ministry of Finance on Monday, following a Moody's upgrade to investment grade, announcing plans to return increased government revenue to citizens via tax cuts or public investment while maintaining fiscal stability and emphasizing the continued ...

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How does the Moody's upgrade influence the government's economic strategy?

Mitsotakis's visit follows Moody's upgrade of Greece's credit rating to investment grade, signifying improved fiscal health and reduced tax evasion. The government plans to use increased revenue to benefit citizens through tax cuts or public investment, maintaining fiscal stability as a cornerstone of economic policy. The emphasis on rapid utilization of Recovery Fund resources continues.",

nrc.nl

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Mar 18, 19:11

Germany to Vote on Budget Amendment to Increase Spending

The German Bundestag will vote Tuesday on a constitutional amendment to relax budget rules, enabling billions in additional spending for defense, infrastructure, and climate projects, despite opposition attempts to halt the vote. This follows a Constitutional Court ruling.

Germany to Vote on Budget Amendment to Increase Spending

The German Bundestag will vote Tuesday on a constitutional amendment to relax budget rules, enabling billions in additional spending for defense, infrastructure, and climate projects, despite opposition attempts to halt the vote. This follows a Constitutional Court ruling.

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How will the planned investments in defense and infrastructure address Germany's economic and geopolitical challenges?

This decision reflects a shift in German policy, driven by the perceived need to increase defense spending in response to the changing geopolitical landscape and a desire for significant infrastructure investment. The planned investments, totaling approximately 1 trillion euros, aim to modernize Germany's military and infrastructure, and support its struggling economy, with 100 billion allocated specifically to a climate and transformation fund.

dw.com

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Mar 18, 22:10

Germany Approves Massive Borrowing for Defense and Infrastructure

The German Federal Parliament approved a multi-billion euro borrowing package for defense and infrastructure, passing a constitutional amendment with 513 votes to 207; the plan needs Bundesrat approval by Friday and includes a €500 billion special fund for infrastructure and climate protection, alon...

Germany Approves Massive Borrowing for Defense and Infrastructure

The German Federal Parliament approved a multi-billion euro borrowing package for defense and infrastructure, passing a constitutional amendment with 513 votes to 207; the plan needs Bundesrat approval by Friday and includes a €500 billion special fund for infrastructure and climate protection, alon...

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Climate Action

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How did different political parties in Germany react to the proposed borrowing package and what were their justifications?

This decision reflects Germany's response to the war in Ukraine and shifting geopolitical dynamics, necessitating increased defense spending and infrastructure investment. The opposition criticized the move as excessive borrowing, undermining the "debt brake" constitutional rule. The package includes a €500 billion special fund for infrastructure and climate protection.

welt.de

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Mar 18, 19:11

Saxony Greens Urge Budget Inclusion of New Federal Loan Options

Saxony's Green party urges the state's CDU/SPD government to utilize increased borrowing capacity enabled by a new €500 billion German federal investment package, emphasizing generational fairness and the need for infrastructure improvements, particularly in climate protection, education, and transp...

Saxony Greens Urge Budget Inclusion of New Federal Loan Options

Saxony's Green party urges the state's CDU/SPD government to utilize increased borrowing capacity enabled by a new €500 billion German federal investment package, emphasizing generational fairness and the need for infrastructure improvements, particularly in climate protection, education, and transp...

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Climate Action

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What are the immediate implications of the Bundestag's financial package for Saxony's budget and investment capacity?

The German state of Saxony's minority government, composed of the CDU and SPD, is urged by the Green party to incorporate the newly available federal loan options into its budget. This follows a Bundestag decision authorizing a €500 billion investment fund, with €100 billion allocated to states, allowing increased borrowing capacity. Saxony's Green party leader, Franziska Schubert, emphasizes the importance of using this opportunity for needed investments.

dw.com

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Mar 17, 10:10

German Coalition Agrees to €500 Billion Investment Package, Lifting Debt Brake

Germany's CDU, SPD, and Greens are poised to form a coalition government, agreeing to amend the constitution to lift the debt brake and facilitate a €500 billion investment package, a move met with cautious optimism and concerns from the German press.

German Coalition Agrees to €500 Billion Investment Package, Lifting Debt Brake

Germany's CDU, SPD, and Greens are poised to form a coalition government, agreeing to amend the constitution to lift the debt brake and facilitate a €500 billion investment package, a move met with cautious optimism and concerns from the German press.

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How do German media outlets assess the risks and potential benefits associated with this unprecedented level of government spending?

German newspapers express reservations about the coalition's plan, fearing misuse of funds for non-essential purposes despite the potential for economic growth. The €500 billion investment package hinges on a constitutional change, allowing for unprecedented borrowing, with business and labor groups eagerly anticipating its implementation. Concerns center on ensuring the funds are used effectively, not just to fulfill political wishes.

corriere.it

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Mar 17, 13:15

Italian Municipalities Raise Taxes Amidst Funding Cuts

Due to reduced central government transfers and increased costs, Italian municipalities have raised local taxes by €4 billion over the last 10 years, impacting families and potentially reducing service quality.

Italian Municipalities Raise Taxes Amidst Funding Cuts

Due to reduced central government transfers and increased costs, Italian municipalities have raised local taxes by €4 billion over the last 10 years, impacting families and potentially reducing service quality.

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How have reduced central government transfers and rising inflation impacted Italian municipal budgets and citizens?

Over the past decade, Italian municipalities have faced a 4 billion euro increase in costs, largely due to reduced central government transfers and rising inflation. This has forced local governments to raise taxes and fees, impacting Italian families.

dw.com

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Mar 17, 16:10

Germany's GDP Growth Downgraded to 0.4 Percent

Germany's GDP growth forecast for 2025 has been significantly lowered to 0.4 percent by the OECD, second only to Mexico among G20 nations, due to recent economic contraction; however, a large new spending package may boost growth in 2026.

Germany's GDP Growth Downgraded to 0.4 Percent

Germany's GDP growth forecast for 2025 has been significantly lowered to 0.4 percent by the OECD, second only to Mexico among G20 nations, due to recent economic contraction; however, a large new spending package may boost growth in 2026.

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What is the immediate impact of the revised GDP growth forecast for Germany in 2025, and what are its global implications?

Germany's GDP is projected to grow by only 0.4 percent in 2025, a significant downgrade from the 0.7 percent predicted in December. This is the second-worst performance among the G20 nations, only surpassing Mexico. The forecast for 2026 has also been slightly lowered, from 1.2 percent to 1.1 percent.

Showing 445 to 456 of 788 results