Germany plans to borrow more than 800 billion euros in new debt by 2030, primarily to finance a 500 billion euro infrastructure fund and raise military spending to 3.5% of GDP by 2029. Chancellor Friedrich Merz expressed confidence that the country would retain its AAA rating despite this massive borrowing. Major rating agencies including Fitch, S&P, Moody’s, DBRS, Scope, and KBRA all assign Germany the top rating with stable outlooks. Germany’s 10-year bond yield reached approximately 3.26% in August 2026, a level not seen in roughly fifteen years. The German economy, emerging from three consecutive years of recession, shows signs of recovery with a sharply rising business climate index and upwardly revised growth forecasts for 2027.
Source: Read the original article
