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Germany No Longer Fears Debt


03.04.2025 10:55

This could be a turning point for Europe.

The newly announced €500 billion budget package marks a departure from austerity and represents the largest increase in government spending in decades. Markets reacted immediately: German shares rose, while bond yields posted their sharpest surge in 35 years.

The key beneficiaries include Siemens, Thyssenkrupp, and Heidelberg Materials, which will benefit from increased infrastructure investment. However, risks remain — potential trade barriers from the U.S. and the ECB’s cautious monetary stance could impact the execution of these plans.

Read our latest analytical report here.

*This report does not constitute investment advice. While we believe a substantial portion of a portfolio should be allocated to fixed-income securities, we recognize investor interest in shares and provide analysis without recommending specific purchases.


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Teniz Capital Investment Banking JSC recommends to carefully assess the feasibility and risks of investments, taking into account the volatility of market conditions. Ownership of securities and other financial instruments is associated with fluctuations: their value can both increase and decrease. The Company cannot guarantee the profitability of investments and a constant level of income.

Licence ARKFMD No. 3.2.249/19 dated 18.05.2023. Licence ARKFMD No. 4.3.19 dated 16.06.2023.