Resolves yes, if the Schuldenbremse, which prohibits the government from taking on high debts, is changed in a meaningful way. The market resolves based on a reform being implemented. It is not enough for it to be in talks or planning.
1,000resolves yes?
> In March 2025, Germany adopted a constitutional reform of its national fiscal framework, with three major novelties. First, a new infrastructure fund, worth EUR 500 billion (11.6% of 2024 GDP), was set up outside the scope of the ‘debt brake’[1]. The fund is intended to finance new projects in the fields of transport, healthcare, energy, education, research and digitalisation. Projects financed by the fund can be approved within 12 years. Second, defence spending above 1% of GDP is excluded from the calculation of the ‘debt brake’. Third, the Länder are allowed to take up new net borrowing of up to 0.35% of GDP annually, as was the case at the federal level. This eases the previous requirement of the Länder to run balanced budgets.