Latest news with #Cologne-based
The Star
13-05-2025
- Business
- The Star
German economy to shrink in 2025 amid global pressures: study
FRANKFURT, May 13 (Xinhua) -- Germany is expected to lag behind other major global economies in 2025, with its economic output projected to contract by 0.2 percent, according to a forecast released Tuesday by the German Economic Institute (IW). The Cologne-based think tank cited U.S. trade policies, ongoing global uncertainties, and persistently low levels of investment as the main factors weighing down the German economy, which has already contracted for two consecutive years. While other leading economies are forecast to return to growth this year, the IW report warns that Germany will remain mired in recession. The institute identified current U.S. trade policies as the most significant threat to the global economy, predicting they could reduce global output by 0.8 percent. The bleak economic prospects are expected to translate into weaker labour market performance. The number of unemployed people in Germany is projected to reach 3 million this summer. "The German economy is in deep crisis," the institute warned in a press release issued in April, noting that one in three German companies plans to cut investment, while up to 35 percent are preparing to reduce their workforce. The IW urged the new federal government to take swift and decisive action to revitalize the economy and counter mounting structural challenges. A separate report released in late April by the German central bank also pointed to a deteriorating outlook. After a modest uptick in economic activity during the first quarter, the central bank warned of a possible setback in the second quarter, describing the overall economic outlook as having turned "significantly gloomier."
Yahoo
13-05-2025
- Business
- Yahoo
German economists predict third year of recession due to US tariffs
Germany's economy is set to contract by 0.2% this year and slip into recesssion for a third consecutive year, according to a new forecast by the Cologne-based German Economic Institute (IW). The country is particularly affected by the ongoing trade conflict triggered by the US government's tariffs, the IW noted. Global uncertainties that are discouraging businesses from making investments are contributing to the downturn, with declines in major purchases such as new machinery and vehicles, it said. High operating costs in Germany further complicate the situation, according to the IW. Germany has seen two consecutive years of recession, with gross domestic product (GDP) having shrunk by 0.2% in 2024. Expectations slightly improved Meanwhile, economic expectations among German financial experts were much more optimistic in May than initially predicted, according to another survey. The Centre for European Economic Research (ZEW)'s economic sentiment index rose by 39.2 points compared to the previous month to +25.2 points. Economists had expected a significantly lower increase on average. "The formation of the new German government, the movement in the customs disputes and a stabilizing inflation rate are contributing to the increased optimism," said ZEW President Achim Wambach. On the other hand, the already very negative assessment of Germany's current economic situation slightly deteriorated again, with the corresponding value dropping by 0.8 points to -82 points. Economists had expected an improvement to -77 points. US trade policy biggest risk US trade policy poses the biggest risk to the global economy this year, according to the IW. Without the US tariff policy, global economic output in 2025 could be up to 0.8% higher, the institute said. The outlook for both Germany's industrial and construction sectors remains grim. Industrial companies are expected to generate less added value this year, following a 3% decline in 2024. High energy prices, rising wages and increasing regulation are placing additional pressure on businesses. After a 3.7% drop in 2024, construction companies are facing further constraints this year, with high construction costs driven by regulation continuing to hinder the sector. The IW has also observed that these trends are now affecting the labour market, with the number of people employed declining since mid-2024. By the summer, the number of unemployed people could reach 3 million, a level not seen since 2010, the economists said. Michael Grömling, head of macroeconomic research at the IW, said Germany's new government now has the opportunity to reverse the trend, pointing at the country's planned special infrastructure fund that could help stimulate the economy.
Hindustan Times
08-05-2025
- Politics
- Hindustan Times
German spy agency pauses 'extremist' classification for AfD party
BERLIN -Germany's domestic spy agency BfV has paused its classification of the Alternative for Germany as an extremist organisation in what the AfD on Thursday called a partial victory for its challenge against the decision. The agency would not publicly refer to the AfD as a "confirmed right-wing extremist movement" until an administrative court in the western city of Cologne has ruled on an AfD bid for an injunction, a court statement said. The BfV's move last week to classify the far-right AfD as extremist produced sharp reactions along the fault lines of German politics, with some lawmakers calling for the AfD to be banned and the AfD casting it as an attack on democracy. It also sparked strong criticism from U.S. President Donald Trump's administration, with Secretary of State Marco Rubio calling on the German authorities to reverse their decision. The extremist classification allows the Cologne-based spy agency to step up monitoring of the AfD, for example by recruiting informants and intercepting party communications. "The measures associated with the classification will also be suspended," a court spokesperson said without elaborating. The agency's 1,100-page experts' report, which will not be released to the public, found the AfD to be a racist and anti-Muslim organisation. Founded in 2013, the AfD has surged to become Germany's second biggest party but other parties have shunned it as toxic. The AfD says its designation is a politically motivated attempt to discredit and criminalise it. Its leadership welcomed the decision by the BfV, which the court said was not acknowledging any legal obligation. "This is a first important step towards our actual exoneration and thus countering the accusation of right-wing extremism," party leaders Tino Chrupalla and Alice Weidel said in a joint statement. The BfV did not immediately comment. The agency's decision to pause the AfD's classification does not mean the BfV has revised its assessment of the party. The AfD has previously lost a legal challenge when its now-defunct youth organization was classified as right-wing extremist. On Wednesday, the Republican chairman of the U.S. Senate intelligence committee called for American spy agencies to "pause" intelligence sharing with the BfV, whose mission includes counter-terrorism. Senator Tom Cotton called for the pause until Germany's government "treats the AfD as a legitimate opposition party", according to a letter to Tulsi Gabbard, Trump's director of National Intelligence.
Yahoo
08-05-2025
- Politics
- Yahoo
German spy agency pauses 'extremist' classification for AfD party, local court says
BERLIN (Reuters) -Germany's domestic spy agency BfV will temporarily refrain from classifying the Alternative for Germany party as an extremist organization, pending litigation by the AfD, a court in the western city of Cologne said on Thursday. The agency would not publicly refer to the AfD as a "confirmed right-wing extremist movement" until the court has ruled on an AfD motion to issue a temporary injunction, the statement said. The extremist classification announced last week allows the Cologne-based spy agency to step up monitoring of the AfD, for example by recruiting informants and intercepting party communications. The agency's 1,100-page experts' report, which is not to be released to the public, found the AfD to be a racist and anti-Muslim organisation. The AfD says its designation is a politically motivated attempt to discredit and criminalise it. The AfD's leadership on Thursday welcomed the decision by the BfV, which the court said was not acknowledging any legal obligation. "This is a first important step towards our actual exoneration and thus countering the accusation of right-wing extremism," party leaders Tino Chrupalla and Alice Weidel said in a joint statement.
Straits Times
08-05-2025
- Politics
- Straits Times
German spy agency pauses 'extremist' classification for AfD party, local court says
FILE PHOTO: Supporters of the Alternative for Germany party (AfD) wave flags as they take part in an AfD campaign rally in Hohenschoenhausen, Berlin, Germany, February 22, 2025. REUTERS/Christian Mang/File Photo BERLIN - Germany's domestic spy agency BfV will temporarily refrain from classifying the Alternative for Germany party as an extremist organization, pending litigation by the AfD, a court in the western city of Cologne said on Thursday. The agency would not publicly refer to the AfD as a "confirmed right-wing extremist movement" until the court has ruled on an AfD motion to issue a temporary injunction, the statement said. The extremist classification announced last week allows the Cologne-based spy agency to step up monitoring of the AfD, for example by recruiting informants and intercepting party communications. The agency's 1,100-page experts' report, which is not to be released to the public, found the AfD to be a racist and anti-Muslim organisation. The AfD says its designation is a politically motivated attempt to discredit and criminalise it. The AfD's leadership on Thursday welcomed the decision by the BfV, which the court said was not acknowledging any legal obligation. "This is a first important step towards our actual exoneration and thus countering the accusation of right-wing extremism," party leaders Tino Chrupalla and Alice Weidel said in a joint statement. REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.
