Germany suspends debt limits to allow borrowing of up to €180 billion in 2021

German lawmakers have agreed to suspend debt limits in the constitution to allow the government its second-highest net borrowing of up to €180 billion in 2021 to finance the coronavirus recovery fund, as reported by Reuters.

Market reaction

This development doesn't seem to be having a significant impact on market sentiment. As of writing, Germany's DAX 30 Index was down 0.15% on a daily basis. Meanwhile, the shared currency struggles to gain traction in the early American session with the EUR/USD pair clinging to small gains near 1.2120.