Trump 2.0: The First 100 Days | EMEA

Germany’s Change of Course Business Expectations and Budget Balance

Impact on CRE

• Germany is easing fiscal policy after a period of strict borrowing limits. The fiscal spending package includes: exemption of defence spending exceeding 1% of GDP from the debt brake limit; a €500bn infrastructure fund; states’ ability to run fiscal deficits of up to 0.35% of GDP; and access to 20% of the infrastructure fund. • This fiscal package is expected to boost Germany’s economy, though the full benefits will take time to materialise. Germany's shift toward easing fiscal policy, alongside a substantial infrastructure investment, will benefit CRE by boosting construction. There will be a greater demand for logistics and industrial space as infrastructure upgrades and manufacturing revitalisation take hold. • Additionally, the fiscal flexibility granted to states could further stimulate regional development. • Overall, fiscal stimulus creates a more

German Ifo* Business Expectation

Germany General Budget Balance

60

100

4

40

50

2

20

0

0

0

-2

-50

-20

%

Index, balance

-4

EUR bn

-40

-100

-6

-60

-150

-8

-10

-200

Jul-2006

Jul-2009

Jul-2012

Jul-2015

Jul-2018

Jul-2021

Jul-2024

Jan-2005

Jan-2008

Jan-2011

Jan-2014

Jan-2017

Jan-2020

Jan-2023

Business Expectations Business Climate Business Situation

supportive environment for CRE investment and development.

1991

1994

1997

2000

2003

2006

2009

2012

2015

2018

2021

2024

Balance, Total EUR % of GDP (RHS)

Source: Ifo Institute, German Federal Statistical Office Statistisches Bundesamt. *A monthly survey measuring German business sentiment, assessing current conditions and expectations for the next six months.

CONTENTS

Cushman & Wakefield