According to Der Spiegel magazine, the German government stands ready to discard its balanced budget rule and take on new debt in case the economy goes into a recession, per Reuters. The Finance Ministry declined to comment on this article.
Earlier this week, the preliminary report published by Germany’s Destatis showed that the economy was expected to contract by 0.1% on a quarterly basis in the second quarter.
With the initial market reaction, the shared currency gathered strength and erased its daily losses against the dollar. As of writing, the EUR/USD pair was virtually unchanged on the day at 1.1105.
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