Doha: European stocks rose Wednesday, after recording sharp declines in the previous session, as German stocks led the gains, after its leaders agreed to reform borrowing rules to boost defense spending and revive growth. The European Stoxx 600 index rose 0.9 percent, after recording its worst daily performance yesterday, Tuesday, since August 2024, after the new tariffs imposed by US President Donald Trump of 25 percent on imports from Mexico and Canada came into effect. The German DAX index rose 3.4 percent. According to Qatar News Agency, the parties, which hope to form the next German government, agreed to create an infrastructure fund worth 500 billion euros ($534 billion) and reform borrowing rules. Shares of construction companies and arms manufacturers gained, to be among the biggest gainers on the Stoxx 600 index. Investors are awaiting the European Central Bank (ECB) meeting tomorrow, when it is expected to cut interest rates by 25 basis points. The US tariffs of 25 percent on Mexico and Canada we nt into effect on Tuesday, after US President Donald Trump announced last Monday that the two major US trading partners had "no room" to negotiate to avoid the tariffs.