Germany's Scholz: Still have fiscal room to do more in case of second coronavirus wave

Germany expects to pay €9 billion in interest on this year's debt, German Finance Minister Olaf Scholz said on Wednesday. 

"In the case of the second wave of coronavirus, we still have fiscal room to do more if needed," Scholz added and said that they have ruled out extending the temporary reduction of VAT into the next year.

Earlier in the day, Scholz announced that German Cabinet has approved the extra budget to finance the coronavirus stimulus package with a record annual new borrowing of €218.5 billion.

Market reaction

The EUR/USD pair recovered from the daily lows in the last hour and was last seen trading at 1.1250, still losing 0.11% on the day.