Institution: If Germany introduces an expansionary fiscal policy after the general election, the euro may pump

IG data on February 21st, German commercial bank forex analyst Ulrich Leuchtmann stated in a report that the euro may benefit if the German government formed after the federal elections on Sunday implements more expansionary fiscal policies. He stated that Germany currently appears to be the ‘sick man of Europe,’ dragging down the eurozone economy with its weak rise. ‘Many market participants may doubt that more expansionary fiscal policies can alleviate this issue.’ Expansionary fiscal policies may have a moderately positive impact on the euro. Although this will increase government debt, it will only slightly alter the assessment of the fiscal situation in the eurozone.