US jobless claims rise to 200K, labor market stays resilient
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Germany's Federal Employment Agency projects its debt will reach €18.7 billion by end-2027, driven by persistently high unemployment straining its budget. The figure reflects sustained labor-market weakness, though the agency's financing structure limits direct fiscal risk. This signals prolonged structural labor-market stress in Germany, with implications for fiscal policy and social spending.
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Germany's coalition government has finalized a record €561 billion 2027 federal budget proposal, prioritizing defense and infrastructure, which includes €210.4 billion in new borrowing, the second highest since WWII. This fiscal expansion is confirmed, though the specific impact on tax increases and potential electricity tax cuts remains uncertain due to ongoing coalition tensions.
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