Meanwhile Greece and Italy, members of the European Unions, passes austerity measures to overcome economic crisis, Germany, the largest economy in Europe, decided Friday that they would pursue more spending.
Germany would borrow €26.1 billion ($35.5 billion) next year, which is nearly 16 percent increase as compare with borrowing this year, Bloomberg reported.
Despite an economic slowdown, Germany can focus on spending thanks to its own domestic policies and an economic stability. In term of growth of gross domestic product, Germany would see nearly 1 percent growth, which is 2 percent lower than this year, but Germany has maintained 7 percent unemployment rate and increased revenue from taxation, privatizations and labor cost cut from public sectors, the Wall Street Journal reported.
German government would use the borrowing to improve infrastructures and invest in efficient energy technology that the government has allocated €26.9 billion, according to Bloomberg.
Chancellor Angela Merkel would include several social programs in order to gain political trusts among constituencies. Those social programs would be a subsidy for parents and minimum wages that she once opposed, according to The Wall Street Journal.
Bloomberg said the Germany would spend up to nearly €307 billion in 2012, which is same amount as 2011.