The end of German ordoliberalism?
The week was marked by a historic turning point for Germany, which plans to invest massively in defence and infrastructure, breaking with its reluctance to increase government debt. This announcement led to a repricing of the term premium, with the yield on the 10-year Bund rising by 40 bp. At the same time, the euro has appreciated against the other major currencies, while European equity markets outperformed the US. As a result, investors have revised their growth forecasts for the euro zone upwards. This change of course in fiscal policy could have significant implications for the Europea...