Time for Germany’s ‘sugar rush’ to hit:

One of the most transformative economic policy shifts in a turbulent year – Germany’s market-moving fiscal boost – is about to kick in, but there’s some trepidation about how all this spending and reform will actually pan out.
Despite all the focus on Washington’s sweeping upheavals over the past nine months, arguably the biggest macro market driver of 2025 has been Germany’s post-election plan to lift its stifling, self-imposed debt brake and spend almost a trillion euros on defense and infrastructure.
While the multi-year investment plan was always expected to truly begin hitting in 2026, markets almost immediately priced in a significant boost to the long-dormant growth potential of Europe’s biggest economy as well as expected ripple effects across the continent.
The euro’s 13% surge against the greenback this year has all come since Germany’s election in February.