The EURUSD currency pair weakened to near 1.0835 in Monday’s European trading, declining amid uncertainty ahead of the Eurozone preliminary Harmonized Index of Consumer Prices (HICP) for July and the Fed’s monetary policy announcement on Wednesday. The Eurozone inflation data will indicate whether market expectations for two more rate cuts by the European Central Bank this … Read more
Germany’s economy was the weakest among its large euro zone peers last year, facing challenges like high energy costs and record high interest rates. The International Monetary Fund has cut its GDP forecasts for Germany, expecting 0.2% growth this year and 1.3% in 2025. German Finance Minister Christian Lindner emphasized the need for an economic turnaround to secure the country’s geopolitical position, especially in the face of Russian President Vladimir Putin’s aggression towards Ukraine. Lindner highlighted that economic strength plays a crucial role in geopolitics.
German Finance Minister Christian Lindner evaded questions about his party leaving the ruling coalition over tough budget talks, stating that compromise has always been reached. Lindner’s comments and low poll ratings have led to speculation about the FDP’s stance on debt-funded public spending. The government is working on the budget for 2025 and the financial plan up to 2028. Lindner aims to achieve an economic turnaround and present a good budget. He presented an idea to free up more funds in budget negotiations by increasing defense spending if debt levels decrease by 2028. Lindner believes it is possible to reach a solution within the current coalition despite challenges.