Merz says Germany can keep AAA rating despite record borrowing

The German chancellor says the economy can convert higher defense and infrastructure spending into more than 1% growth next year.

German Chancellor Friedrich Merz said the country can retain its top credit rating despite record borrowing and has room to strengthen economic growth, Bloomberg reported.

Germany currently holds AAA ratings from major agencies. Merz said the country faced no difficulty refinancing its debt on capital markets and did not expect that to change.

The chancellor said Germany’s increased spending on defense and infrastructure could help revive the economy. He said growth could exceed 1% next year.

Merz made the comments after a two-day cabinet retreat outside Berlin, as investors continued to assess Germany’s borrowing plans and economic outlook.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.

German Chancellor Friedrich Merz said the country can retain its top credit rating despite record borrowing and has room to strengthen economic growth, Bloomberg reported.

Germany currently holds AAA ratings from major agencies. Merz said the country faced no difficulty refinancing its debt on capital markets and did not expect that to change.

The chancellor said Germany’s increased spending on defense and infrastructure could help revive the economy. He said growth could exceed 1% next year.

Merz made the comments after a two-day cabinet retreat outside Berlin, as investors continued to assess Germany’s borrowing plans and economic outlook.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.