European markets have experienced significant fluctuations following the announcement of a substantial new spending package by the German government. The Euro surged 4.7% against the US Dollar, marking the largest increase since the financial crisis. Analysts are assessing the potential impacts on foreign exchange, interest rates, and credit markets. The influx of capital is expected to benefit defense and technology sectors across Europe and other countries, including South Korea, Japan, Canada, Brazil, and Australia. Market observers are closely monitoring the EUR/USD exchange rate, with forecasts suggesting a potential rise to 1.20 in the near term.