Germany’s financing costs rose dramatically this week due to a shift in fiscal policy by chancellor-in-waiting Friedrich Merz, leading to increased debt issuance and a surge in yields. However, investors believe that Merz’s spending plan can boost growth without overstretching Germany’s finances. The rise in yields reflects optimism about economic growth, with some economists revising up their forecasts. While the increase in borrowing costs may impact other Eurozone countries with higher debt burdens, Germany’s relatively low debt levels make a debt crisis unlikely. The shift in fiscal policy is seen as positive for growth, but some analysts caution that it may not address deeper structural issues in the German economy. Despite the increase in yields, Germany is viewed as having sufficient fiscal space to support its spending plan. the text you have read.
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Undocumented Workers, Fearing Deportation, Are Staying Home
In downtown Freehold, N.J., the absence of undocumented Latin American day laborers due to fear of deportation under President Trump has left industries like construction, agriculture, elder care, and hospitality struggling with labor shortages, potentially leading to higher costs for consumers. The looming threat of mass deportations and the phasing out of programs like temporary protected status have left industries reliant on immigrant labor in a state of uncertainty. The impact extends beyond immigrant communities...
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