In a panel discussion organized by the Institute of International Finance, Deutsche Bank AG Chairman Alexander Wynaendts, said that Germany will receive an additional €1 trillion ($1.1 trillion) in funding. Germany doesn’t have to pay extra money for this funding, thanks to the positive response by the investors. This happened after Germany passed a large spending bill which is now being considered a historic move for the country. Investors want to lend money to Germany at a very low cost through the bond market because of their confidence in the German economy.
How does Germany plans to use the additional fund?
Alexander Wynaendts said that money will be spend to modernise infrastructure and strengthen defence system to boost Germany’s economy. Wynaendts feel that sudden abundance may lead to the risk of wealth mismanagement. Germany wants to ensure that the growth they are getting from the bond market continues for a long term rather than just a temporary growth.
Germany is looking forward in making certain reforms like improving the tax system and labour laws and also reducing unnecessary regulations. Germany needs to act quickly and need to use this opportunity as a massive and profitable investment for the country.
