Europe stocks close higher led by Germany’s DAX after lawmakers reportedly agree spending boost
European markets closed higher on Friday after German lawmakers reportedly came closer to agreeing on reforming the country’s so-called debt brake rule.
Multiple media reports said Friday that Germany’s likely next chancellor Friedrich Merz had won support from the Greens party to hike public borrowing to allow an increase in defense spending. The motion, which requires a change to the German constitution, needs backing from two-thirds of the lawmakers elected to the country’s parliament.
The regional Stoxx 600 index closed 1.14% higher, with the German DAX index up by 1.86%.
The Stoxx 600 is nonetheless heading for a second straight weekly loss as regional investors monitor tumultuous developments on transatlantic trade policies.
Earlier this week, the EU announced it would retaliate to Trump’s 25% tariffs on steel and aluminum with countermeasures on 26 billion euros ($28 billion) worth of goods. The EU’s tariffs could take aim at clothing, alcohol and industrial goods imported from the United States.
Trump swiftly responded to the announcement with a threat to impose further levies on EU goods, threatening on Thursday to slap 200% duties on champagne and spirits originating from the bloc.
Source : CNBC
