Germany Sees Growth Revival in H2 as EU Backs Klingbeil’s Fiscal Plan

German Finance Minister Lars Klingbeil said on Wednesday that Berlin expects the economy to expand again in the second half of 2025 as recently approved government measures start to take effect. He did not quantify the anticipated rebound but stressed that fiscal support already legislated would underpin activity after a weak first half. Klingbeil added that the European Union’s fiscal framework provides sufficient leeway for member states, noting that he has received "positive signals" from the European Commission regarding Germany’s budget plans. The endorsement should allow the government to continue targeted spending without breaching bloc-wide deficit limits. The minister also cautioned that Washington’s 145% tariff on Chinese goods—introduced in April—poses risks not only to European companies but "at least as much" to the U.S. economy itself, underscoring wider global headwinds facing German exporters.