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Germany to Sell More Debt to Fund Growth and Defense Plans

Takeaways by Bloomberg AI

Germany will borrow about a fifth more than planned in the coming months to help fund a surge in spending, while a deal to secure a €46 billion ($53 billion) package of tax breaks highlighted how debt needs are set to grow.

The bump in third-quarter issuance and the tax measures are part of efforts by Chancellor Friedrich Merz’s ruling coalition to revive Germany’s stagnating economy and bolster the armed forcesBloomberg Terminal. The cabinet also approved this year’s budget and the government’s mid-term finance plan, which includes net new borrowing of about €500 billion through 2029.