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Citing three  people familiar with the internal discussions, Reuters reported that Germany was considering the creation of a “shadow budget” with an aim to increase public spending beyond restrictions of the national debt rule.

“Government officials are flirting with the idea of setting up independent public entities that would seize the historic opportunity of zero borrowing costs and take on new debt to increase investment in infrastructure and climate protection, said the officials, who all spoke on condition of anonymity,” Reuters reported.

With the initial reaction, the EUR/USD pair jumped to a daily high of 1.1058 and was last seen trading at 1.1050, adding 0.22% on the day.