The German finance ministry is planning to increase new borrowing by €62.5 billion to €218.5 billion this year to finance the coronavirus stimulus package, Reuters reported on Monday, citing two people familiar with the matter.
“Germany’s borrowing plans will push up the debt-to-GDP ratio to around 77% in 2020 from below 60% in 2019,” sources further told Reuters and added that the budget deficit is expected to rise to 7.25% of GDP in 2020.
Market reaction
Germany’s DAX 30 struggled to gain traction on this headline and was last seen losing 1.35% on the day at 11,788 points.
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