Latest news with #GermanGovernment
Reuters
a day ago
- Business
- Reuters
German government to approve 2026 budget with record investment and borrowing surge, sources say
BERLIN, July 28 (Reuters) - The German government will on Wednesday back a 2026 draft budget which includes record investment of 126.7 billion euros and borrowing of 174.3 billion euros as part of its fiscal bazooka for infrastructure and defence, finance ministry sources said. Germany is throwing off decades of fiscal conservatism in the hope of reviving economic growth, modernising its crumbling infrastructure and scaling up military spending, as Europe's biggest economy has gone from economic powerhouse to the euro zone's laggard. It is the only G7 economy that failed to grow for the last two years and the government forecast in the spring that it would stagnate again this year. The sources said that with the budget plans, the economic environment should improve noticeably over 2025 and 2026 compared with those forecasts. The 2026 draft budget comes together with a medium-term financial framework until 2029, with the whole package expected to be approved by the cabinet. The budget discussions will then start in parliament at the end of September before expected approval in both houses of parliament at the end of the year. The 2026 draft budget, with total spending of 520.5 billion euros ($606.80 billion), includes 126.7 billion euros ($147.71 billion) in investments earmarked for the modernisation of the country. That is an increase from 74.5 billion euros in 2024 and 115.7 billion euros in 2025. The investment surge in 2026 and subsequent three years will be possible thanks to a special 500 billion euro ($583 billion) infrastructure fund and an exemption from debt rules for defence spending approved in March. The special fund for infrastructure, which is also excluded from Germany's "debt brake" that limits borrowing to 0.35% of GDP, will add borrowing of 58.9 billion euros in 2026. For defence, the 100-billion-euro special fund created by former Chancellor Olaf Scholz following Russia's invasion of Ukraine, which will be exhausted in 2027, will add 25.5 billion euros in borrowing in 2026. In the core budget, borrowing will go up from 33.3 billion euros in 2024 to 89.9 billion euros in 2026, the sources said. Adding those three components, total borrowing in 2026 will be 174.3 billion euros ($203.20 billion). It compares with total borrowing of 50.5 billion euros in 2024, under the previous government. Interest expenses will rise more sharply than previously forecast, the sources said, forecasting an increase to 66.5 billion euros in 2029, which compares with the 61.9 billion previously expected. Germany will raise defence spending to 3.5% of economic output by 2029, sources said on Monday. After low spending following the end of the Cold War, Germany complied with the NATO defence alliance's target of 2% of GDP for the first time in three decades in 2024 due to Scholz's special fund. NATO countries committed in June to spend 2.8% of GDP on defence in 2026 and then increase it to 5% - a new target to be achieved over the next 10 years, representing a jump worth hundreds of billions of dollars a year from the current goal. Germany's total defence spending will go up from 95.1 billion euros ($110.90 billion) in the draft budget for 2025 to 161.8 billion euros ($188.67 billion) in 2029, the sources said. Germany would be able to borrow a total 380 billion euros for defence between 2025 and 2029 thanks to debt brake reform from March, they said. ($1 = 0.8519 euros)
Asharq Al-Awsat
2 days ago
- Politics
- Asharq Al-Awsat
Berlin Says It Is Prepared to Increase Pressure on Israel Over Gaza
The German government said on Monday that it is prepared to take steps to put pressure on Israel with regards to the humanitarian situation in Gaza, but did not give details on what they could be. "The chancellor was very clear in the phone conversation with the Israeli prime minister ... that the federal government is prepared to increase the pressure if progress is not made," a spokesperson said. "In principle we are prepared to take further steps, which is also the purpose of this afternoon's security meeting," he said, referring to a meeting of the German security cabinet.
LBCI
5 days ago
- Politics
- LBCI
Germany says no plans to recognize a Palestinian state 'in short term'
Germany said Friday it had "no plans to recognize a Palestinian state in the short term" after President Emmanuel Macron said France was intending to make such a move in September. "The government continues to regard the recognition of a Palestinian state as one of the final steps on the path to achieving a two-state solution," spokesman Stefan Kornelius said in a statement, adding that "Israel's security is of paramount importance to the German government." AFP
Russia Today
22-07-2025
- Politics
- Russia Today
Two bald men fighting over a comb: The UK–Germany ‘alliance'
Only a complete imbecile would trust the British as allies. History offers no example of London taking serious risks for the sake of partnership. On the contrary, Britain's favorite geopolitical sport has long been to encourage continental states to exhaust themselves in battles with stronger adversaries – only for the UK to later emerge as the diplomatic victor. Throwing allies under the bus is tradition, not exception. Which is why it's safe to assume that the German government is fully aware the so-called Kensington Treaty – signed with the UK on July 17, 2025 – is not a serious agreement. There are several reasons for this. First, both countries are NATO members, and only the United States enjoys the freedom to bend bloc rules. Second, neither Britain nor Germany possesses the military resources or political will to rebuild a meaningful defense posture. And third, there's no one for them to fight – at least not credibly. This odd little treaty capped off what was already a turbulent week in global affairs. It began with contradictory statements from US President Donald Trump about Ukraine and ended with yet another Israeli airstrike – this time targeting Syria, where the new regime is battling internal unrest. Amid such chaos, the Berlin-London accord adds the perfect dash of absurdity: a ceremonial nod to 'unity' that distracts from the West's deepening dysfunction. The British and German leaders say their pact covers everything from defense cooperation to environmental policy. In reality, it's a political pantomime. Unlike the raw aggression of Israel or the economic ultimatums coming from Washington, this is Western Europe's softer contribution to the week's geopolitical theatre – a performance full of noise but void of substance. Consider the Israeli strikes on Syria, a continuation of Tel Aviv's self-declared role as 'sheriff of the Middle East.' Israel's foreign policy, once bound by red lines, now seems guided only by brute impulse. Whether such a strategy is sustainable remains to be seen, but its message is clear – and chilling. Then there's President Trump. His recent comments on Russia and the Ukraine conflict suggest a new American approach: shift the entire burden of confronting Moscow onto European allies. The scale of those expected 'costs' is still unknown, but the confusion in European capitals was immediate. Trump's remarks left the EU's biggest players looking disoriented, scrambling to understand what Washington actually expects. For months now, the Western Europeans have played the role of geopolitical extras – sitting through summits, issuing statements, and floating vague proposals like a 'peacekeeping force' for Ukraine. The idea is laughable. Moscow would never allow it, and everyone knows it. Yet these leaders continue to perform, hoping performance alone will pass for policy. Now Trump has called their bluff. He wants cash, troops, commitment. NATO's new Secretary General Mark Rutte – now reborn as an American loyalist – welcomed the idea enthusiastically. But key European capitals balked. France, Italy, and the Czech Republic refused to participate in the new American initiative. France, despite loud rhetoric, has provided only token military aid to Kiev – ten times less than Germany. Italy has given even fewer crumbs. So what do Western Europe's 'leading powers' do instead? They stage a show. Enter the Kensington Treaty. Its breadth is comical: a proposed direct rail link between London and Berlin 'to improve defense capabilities,' plans for school tourism, joint forums on business, and German investment in Britain to create about 600 jobs. This is not geopolitics; it's domestic public relations dressed up as diplomacy. But the core problem runs deeper. For decades now, Western Europe has struggled with a contradiction it cannot resolve. On the one hand, its politicians recognize the need to appear decisive in security matters. On the other, they know that real military action – especially against Russia – is a fantasy. There is no scenario where they could win. So they gesture, but never act. After the launch of Russia's military operation in Ukraine, this tension briefly gave these Western European leaders a sense of purpose. They could speak boldly, posture grandly. But in the three years since, not much has changed. Despite grand declarations and strategy papers, the bloc has failed to meaningfully expand its defense capacity. At most, they might manage to recruit a few thousand mercenaries from impoverished Balkan states to send to the front. Even this is unlikely. Any serious move toward independent military power in Western Europe will immediately trigger scrutiny from Washington. The United States has no intention of allowing its trans-Atlantic partners to act unilaterally – no matter how often it demands they 'do more.' When Trump says the bloc must rearm, he means it should buy American weapons. Not build its own industry, not forge its own path. Just consume US exports. This explains why the supposed 'militarization' of Germany has sparked so much talk but so little change. It isn't about Berlin becoming a threat – it's about Berlin spending more on F-35s. Western Europe remains dependent, constrained, and cautious. Yes, it can still cause harm to Russia in limited ways. But the image its politicians sell to their voters – that of a bold, united, and prepared half-continent – is an illusion. The new Anglo-German treaty is just the latest act in this tragicomic performance. It makes no military sense, no diplomatic sense, and no strategic sense. But it makes perfect political sense – for a Western Europe that is drifting, divided, and desperate to look busy while doing nothing at article was first published by Vzglyad newspaper and was translated and edited by the RT team.
Times of Oman
22-07-2025
- Politics
- Times of Oman
Germany greenlights Taliban consular officials to support Afghan deportations
Berlin: The German government has confirmed that the Taliban will send two consular officials to Germany to assist with the deportation of Afghan nationals, particularly those convicted of serious crimes and rejected asylum seekers, Khaama Press reported. Government spokesperson Stefan Kornelius stated on Monday that an agreement had been reached to allow "two representatives of the Taliban administration" to operate in consular roles in Germany. Their presence aims to support the repatriation of deported Afghans, especially those involved in serious criminal offences, Khaama Press added. This development follows a report by the Frankfurter Allgemeine Zeitung, which revealed that Germany's acceptance of the consular officials is linked to the Taliban's cooperation in accepting deportees. Just last week, Germany deported 81 Afghan nationals, most of whom were found guilty of serious crimes, Khaama Press noted. Kornelius clarified that the arrangement does not imply diplomatic recognition of the Taliban but is part of ongoing technical-level communication between Germany and Afghanistan's de facto authorities. He emphasised that systematic deportations will continue, stating, "This process is not completed with just one flight," according to Khaama Press. A Taliban official, speaking on condition of anonymity, confirmed that discussions are ongoing but said no final agreement has been reached yet. "The matter is still under negotiation," the source told Khaama Press. The move has sparked debate within Germany, with some expressing concerns about engaging with the Taliban, while others view it as a necessary measure to manage deportations responsibly and efficiently. Adding to this, Germany's Interior Minister Alexander Dobrindt has said the Afghan consulate in Berlin should be handed over to the "Taliban" to facilitate the deportation of Afghan "criminal" refugees from Germany, Tolo News reported. Speaking to a German media outlet, Dobrindt clarified that this proposal does not amount to formally recognising the "Taliban" government. He also stated that he had reached an agreement on the matter with Germany's Foreign Minister, according to Tolo News. Dobrindt explained that in the absence of a formal agreement with the Islamic Emirate, Germany is unable to deport Afghan refugees or extend their detention periods for deportation. "One of the problems I recognize and needs to be resolved is how we can properly carry out deportations. Until we have an agreement, we cannot send anyone back to Afghanistan, and I cannot extend the detention period for deportation," he said. Tolo News further reported that the Afghan consulate in Berlin is still being run by officials from the former Afghan government. Transferring control of the consulate to the Islamic Emirate would, in practice, facilitate deportation coordination even without formal diplomatic recognition In response to Germany's proposal, Tolo News reported that Abdulmutalib Haqqani, spokesperson for the Ministry of Refugees and Repatriation of the Islamic Emirate, said that the return of Afghan refugees must be voluntary and supported financially by the German government. "We accept our citizens back from Germany, but it must be voluntary, not forced. Additionally, the German government should financially support their resettlement in Afghanistan so they can remain permanently," Haqqani told Tolo News. Regarding the fate of Afghan refugees accused of crimes, Haqqani added: "Decisions will be made in accordance with Islamic Sharia law after verifying the documents." Germany has previously deported some Afghan nationals accused of criminal offences, but current legal limitations have slowed the process. Tolo News noted that Dobrindt's latest remarks come amid increasing pressure on European countries to deal with undocumented and criminal refugees.
