7.5.2025
Germany's incoming government, led by Friedrich Merz, has announced plans to create a €500 billion infrastructure fund. This initiative aims to modernize the military and stimulate the economy by loosening fiscal rules. The proposed constitutional amendment seeks to exempt defense spending from the debt brake, marking a significant shift in Germany's fiscal policy.
7.5.2025
Germany's economy has contracted for the second year in a row, with a 0.2% decline in GDP for 2024. Factors contributing to this downturn include reduced manufacturing output, particularly in the automotive and chemical sectors, and decreased construction activity. Economists warn that without significant reforms, Germany risks prolonged economic stagnation.
7.5.2025
The OECD has revised Germany's economic growth forecast for 2025 down to 0.7%, citing political instability following the collapse of the ruling coalition and concerns over global trade tensions. The organization warns that without structural reforms, Germany's economic challenges may persist.
7.5.2025
At the United Nations Climate Summit, Germany called on industrial nations to commit to faster carbon reduction targets and pledged €2 billion in climate finance.