As Germany’s parliament convened an emergency session on Tuesday to vote on a hundreds of billion euro spending plan, it became clear that the proposed fiscal boost has already had an impact on attitudes towards Europe’s biggest economy.

Germany's economic weakness carried over into the start of 2025, but fiscal policy plans by the country's future government could help stabilise expectations and provide planning security, said the economy ministry in its monthly report on Monday.

Germany's lower house of parliament is set to vote on Tuesday on a massive surge in borrowing that could boost Europe's largest economy and stimulate growth across the region, even as it faces trade tensions with top partner the United States.