What's going on?

The UK government presented its budget for the coming year on Monday � potentially the last before it Brexits the European Union (EU) in March � and there were a couple of eye-catching announcements.

What does this mean?

The big news is that the UK�s actually expecting better economic growth in the next couple of years than in 2018 � which may help increase government spending after years of cuts. The UK predicts that its deficit (i.e. the amount it spends beyond what it earns) will drop below 1.4% next year, down from 10% in 2010. A growing economy adding less debt each year frees up cash for things like healthcare without raising taxes� all subject to a favorable Brexit deal, of course.

Why should I care?

For markets: Pound shrugs, tech flinches.

The value of the pound wasn�t too bothered by the budget announcement � it barely moved on Monday, with the terms of Britain�s EU exit likely to be the real driving force behind the currency�s future movements. But there was further woe for global tech companies, with plans to introduce a digital sales tax on goods and services sold online in the UK by larger firms � and shares of Facebook, Amazon, and Google parent Alphabet fell, perhaps pushed lower by the news.

The bigger picture: It�s not so smooth on the continent, either.

German Chancellor Angela Merkel said on Monday that she�d step down as leader of her political party after it was hit with losses in regional elections recently. She�s been Germany�s top dog since 2005, but her departure won�t be immediate � she�s likely to remain as such until 2021. The euro fell in value as the news broke (Germany is Europe�s largest economy and leadership changes may signal uncertainty ahead) but recovered along with rising stocks � maybe because there�s a three-year buffer of stability between now and then.