Chancellor Friedrich Merz outlined Germany's reform agenda, focusing on health, pensions, defense, labor, energy, taxes, bureaucracy, and investment. He urged parliament to support the proposals aimed at boosting growth and adapting to global challenges.
German Chancellor Friedrich Merz will deliver a government statement to parliament on reforms and the upcoming EU summit. Talks with unions and employers on labor market, social security, and bureaucracy reforms were constructive but yielded no decisions. The EU summit will focus on Ukraine and the bloc's long-term budget.
German government and social partners agreed on the necessity of reforms to strengthen Germany's competitiveness during talks at the Chancellery. While there's consensus on the need for action to secure jobs and improve the business location, specific solutions remain undecided. Further discussions are planned.
Germany's government has introduced an aviation strategy to support the industry, which is facing a crisis due to rising fuel costs and the Iran conflict. Measures include reducing air traffic tax and flight control fees, but industry groups and environmental organizations criticize the plan as too vague and lacking in climate protection measures.
Former German UN Ambassador Christoph Heusgen blames the German government for the failed bid for a UN Security Council seat, citing insufficient campaigning and perceived low value placed on the UN by Chancellor Friedrich Merz. He also suggests Germany's stance on Israel's actions in Gaza may have contributed to the loss.
The German government has condemned the visit of opposition AfD party politicians to Russia for the St. Petersburg International Economic Forum. Dmitryev criticized the German government's short-sighted and isolationist policies, stating they undermine Germany's economy and energy security.
AfD deputy Markus Frohnmaier stated that the German government's "course toward militarization" threatens the country's security, criticizing the CDU and SPD for prioritizing "readiness for war" over diplomacy. He defended the AfD as the only party advocating for dialogue and Germany's interests.
The German government has criticized the participation of AfD politicians in a Russian economic forum, calling it "clearly contrary to German interests." The Foreign Ministry had explicitly advised against the trips, warning that attending state-organized propaganda events undermines foreign and security policy principles.
The German government has approved a 12-point action plan for a circular economy, aiming to boost product longevity, repair, and recycling by 2027. It includes a €260 million initial investment and aims to enhance economic independence by reducing reliance on raw materials.
The German government has agreed on a 12-point action plan for a circular economy, to be implemented by the end of 2027. The plan aims to boost product longevity, repair, and recycling, supported by €260 million in initial funding and €305 million from 2027-2030. It includes a new digital platform, product passports, and a textile law.
Germany supports stronger EU trade defenses against a surge in Chinese goods, backing the European Commission's push to protect European industry amid a €360 billion trade deficit.
Germany's Foreign Minister Johann Wadephul engaged in intensive diplomatic efforts this week, meeting with counterparts from Turkey, the UAE, and Jordan. Chancellor Friedrich Merz expressed disillusionment with US and Israeli actions against Iran, emphasizing Germany's commitment to European diplomatic solutions and strategic cooperation with Gulf states. These efforts also support Germany's bid for a UN Security Council seat.
A German tabloid reports the government plans to raise the retirement age to 70, sparking criticism. Chancellor Merz proposes Ukraine become an EU associate member. Other news includes a house collapse victim found, espionage charges, and a World Cup squad announcement.
German experts will present a plan within six months to digitize and simplify social benefits like basic security, child supplements, and housing benefits. The government expects significant savings, but economists warn increased transparency could lead to more applications, and flat-rate benefits might increase costs.
A report by the Centre for European Reform attributes Germany's economic struggles to the 'China shock', citing a 40% decline in exports to China since 2021 and a reversal in capital goods trade.
Berlin expects Washington to be more responsible towards its allies
Bank of England expected to keep rates at 3.75% amid Iran war fallout, while oil prices jump 7% to highest since March 2022. China's factory output rises for second month as exporters ship early ahead of potential cost increases. Germany posts 0.3% Q1 growth, defying expectations. Whitbread cuts 3,800 jobs (12% of UK/Ireland workforce) after tax rises and activist investor pressure. Air France-KLM scales back capacity forecasts as jet fuel costs soar.
An emergency declaration would allow the German government to get around constitutional debt limits.
Russian Deputy Foreign Minister Dmitry Lyubinsky accused the German government of destroying bilateral relations, claiming at an MGIMO roundtable that Germany is 'literally robbing its people blind to arm the Kiev regime.' He warned that the once-flourishing German economy is being sacrificed and questioned whether a point of no return has already been passed under Chancellor Friedrich Merz.
The German government has officially halved its economic growth forecast for 2026, citing the severe impact of energy shocks stemming from the Iran war. This revision reflects a significant cooling for Europe's largest economy.
Merz’s government blames rising fuel costs and geopolitical shocks for renewed weakness, but economists say the coalition shares the blame.
