By Eric Peters, CIO of One River Asset Management
“Germany is back,” declared Friedrich Merz, having successfully convened with the Green party to exorcise Deutschland’s demons of Weimar past.
So, the deficit limit that Germans imposed upon themselves will be lifted, their debt brake released. It’s hard to overstate the importance of such a shift in Europe’s most culturally austere nation, its biggest economy. Deficits and debts will rise across Europe, money supply, inflation too.
