German Cabinet passes extra budget to finance coronavirus stimulus package

German Cabinet has approved the extra budget to finance the coronavirus stimulus package with a record annual new borrowing of €218.5 billion, Germany's finance ministry announced on Wednesday.

Commenting on the matter, "the stimulus package shows that Berlin is doing everything to get out of the crisis with full strength," German Finance Minister Olaf Scholz said. "We can afford this fiscal act of strength now because we reduced our debt in the past."

Market reaction

The EUR/USD pair largely ignored this development and was last seen trading at 1.1231, losing 0.3% on a daily basis.