Germany plans to borrow nearly 180 billion euros ($214.60 billion) next year, nearly double the amount originally budgeted, as Berlin expands aid to mitigate the impact of the COVID-19 pandemic on Europe's largest economy. Meanwhile, the total number of people infected with coronavirus in Germany during the pandemic has exceeded 1 million. Daily cases growth appears to have peaked out:

The Budget Committee of the Bundestag agreed on the plan on Friday night after 17 hours of talks, noting that it is the second-highest net new borrowing in the history of post-war Germany: 179.82 billion euros for 2021, compared with 96 billion euros originally foreseen by the finance minister Olaf Scholz in September. Financial support for businesses closed on November 2 due to the lockdown will be extended.

Chancellor Angela Merkel's government expects Germany's economy to contract seasonally adjusted 5.9% in 2020 and recover 4.4% in 2021.

Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to the author, and not to the author’s employer, organization, committee or other group or individual or company.

High Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72% and 75% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd and Tickmill Europe Ltd respectively. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.