Latest news with #LarsKlingbeil
Yahoo
5 hours ago
- Business
- Yahoo
German finance minister wants quick results from state investments
Germany's Finance Minister Lars Klingbeil wants to see results from the planned billion-euro investments in infrastructure before the end of this year. "I think this is also very important in the fight against right-wing populism, to show people that the country is modernising, that something is happening and that life is becoming easier thanks to investments in infrastructure," said the Vice-Chancellor at the Hamburg Sustainability Conference (HSC). "My goal is for people to see that something is happening this year." He also appealed to German businesses, "now is the time to invest." At the same time, he called on Europe to speed up political decisions, saying there is too much bureaucracy and too little politics. He pointed out that the presidential election in Poland did not turn out well for Europe, and that 2027's presidential election in France is approaching. "No one knows what will happen then," he said. He expressed confidence in the outcome of the trade dispute with the United States. Germany and Europe's clear message to the United States is "We want a common path and are looking for a common solution." With regard to China, Klingbeil said that Germany should definitely cooperate with Beijing, but at the same time the clear message is that if Taiwan is attacked, everything will change. Klingbeil said that Germany would remain a reliable partner in development financing, "especially now that other important donor countries are reducing their support." Germany is on track to become the world's largest donor of official development assistance, he added.
Bloomberg
2 days ago
- Automotive
- Bloomberg
Germany Plans Corporate Tax Breaks to Spur Investment, DPA Says
German Finance Minister Lars Klingbeil is planning a number of tax breaks for companies aimed at spurring investment and lifting the economy out of its long bout of stagnation, according to Deutsche Presse-Agentur. The measures would make it more attractive for firms to buy electric cars, as they could deduct 75% of the cost from their taxes in the year of purchase, DPA reported late on Saturday, citing a draft law.
Time of India
3 days ago
- Business
- Time of India
Germany's Finance Minister Blocks Taurus Missile Supply To Ukraine As Russia Threatens Retaliation
Germany's Finance Minister Blocks Taurus Missile Supply To Ukraine As Russia Threatens Retaliation Source: Germany is backing away from supplying Ukraine with Taurus long-range missiles, reportedly due to cost concerns, training delays, and fears of provoking Russia. Finance Minister Lars Klingbeil opposed the move, highlighting the risk of being seen as a direct war participant. This comes just after Russian Foreign Minister Lavrov warned of war if Germany provided such weapons. Despite earlier promises by Chancellor Friedrich Merz, Berlin now offers a joint missile production plan instead, reflecting internal coalition divisions and strategic ambiguity on its Ukraine policy.
Qatar Tribune
27-05-2025
- Business
- Qatar Tribune
Germany earmarks $125 billion for 2025 to revive sluggish economy
Agencies The German government is earmarking some 110 billion euros ($125 billion) in public investments this year to revive the nation's sluggish economy, the country's new finance minister, Lars Klingbeil, said on Tuesday. 'We want there to be tangible changes for people who work hard and who rightly expect our country to function better,' said Klingbeil, who also serves as vice chancellor in Chancellor Friedrich Merz's new government. The Finance Ministry said investments are to increase by almost 50% in 2025, compared to the previous year, the report by the Deutsche Presse-Agentur (dpa) said. The investments are to come from Germany's core budget, as well as a 500-billion-euro package that was passed in March. 'At the same time, we will implement comprehensive structural reforms and continue to strictly consolidate the budget,' Klingbeil said in an emailed statement to Reuters. Germany's new coalition government plans a surge in public spending targeting defense and infrastructure, hoping to close gaps in long-neglected areas of investment while hauling the economy out of a two-year downturn. 'My top priority is to put Germany on a growth path now. This is how we boost the economy and secure jobs,' said landmark 500-billion-euro package was rushed through the German parliament following February's parliamentary elections by the incoming coalition partners – Merz's Christian Democrats (CDU), the Bavaria-only Christian Social Union (CSU) and Klingbeil's center-left Social Democratic Party (SPD). It allowed the new administration to circumvent strict rules on borrowing and deficit spending to invest in defense, infrastructure and climate protection measures. The package required votes from the Greens, who secured a promise for 100 billion euros of the pot to be transferred to the government's Climate and Transformation Fund, dedicated to climate spending. However, the Greens – now in the opposition – have warned that the government could use the special fund to plug budgetary holes and finance expensive giveaways promised during the election campaign. On Tuesday, Klingbeil announced comprehensive structural reforms to cut budgetary spending. The government is currently preparing a draft of the 2025 budget, which the cabinet is due to approve on June 25. The announcement by the finance minister comes as a new projection by the German Chamber of Commerce and Industry (DIHK) on Tuesday showed the German economy is expected to contract by 0.3% this year, shrinking for a third consecutive year. The risk of recession persists, the DIHK said, but following a promising first quarter, its projection was more optimistic than the previously forecast 0.5% contraction published in February. Economic growth in the first quarter was significantly stronger than expected due to export and industry frontloading ahead of U.S. tariffs. Germany had been expected to be badly affected by tariffs due to its export-oriented economy. The U.S. was Germany's biggest trading partner in 2024, with two-way goods trade totaling 253 billion euros. The DIHK forecasts German exports to decline by 2.5% in 2025, also contracting for a third consecutive year. A DIHK survey, conducted among 23,000 companies from all sectors and regions, showed that 29% of them see exports falling over the next 12 months, while only 19% expect exports to rise. The German economy continues to struggle with pessimistic business sentiment, standing at 94.9 in the latest survey. Values under 100 mean that there are more pessimists than optimists. 'Businesses are still waiting for signals of progress,' DIHK managing director Helena Melnikov said, calling for urgent political action.
Russia Today
27-05-2025
- Business
- Russia Today
Kremlin warns of potential German-led ‘escalation'
Moscow considers Berlin's potential shift on Ukraine's use of German long-range weapons against Russia as a sign of 'serious escalation,' Kremlin spokesman Dmitry Peskov warned on Tuesday. His comments came in response to German Chancellor Friedrich Merz's declaration on Monday that there are now 'no more range restrictions' on Western-supplied weapons used by Kiev against Russian military targets. 'If this is true, then this is an escalation and a serious escalation, which most severely undermines attempts for a peaceful settlement that have been made,' Peskov said, referring to the first direct peace talks in three years between Russia and Ukraine earlier this month. Merz said on Monday that missiles from the UK, France, Germany, and the US could now be used without geographic limits against Russian military targets. His remarks sparked confusion over whether he was announcing a new policy and drew concern from within his own coalition. German Vice Chancellor and Finance Minister Lars Klingbeil said no new decisions had been made on the range of Ukrainian strikes using German weapons beyond those set by the previous government. Ralf Stegner, a member of Merz's coalition partner, the SPD, called the comments 'unhelpful' and called for a stronger focus on diplomacy. Merz later clarified that the decision to lift restrictions on Western arms used by Ukraine had been made months ago, further confusing the public and reigniting debate over the possible delivery of German Taurus cruise missiles to Kiev. With a range of up to 500 kilometers, the missiles could strike deep inside Russian territory, including the Russian capital. Moscow has warned that supplying such weapons would make Germany a direct party to the conflict. Peskov noted that any change in Ukraine's use of Western-supplied weapons must be officially approved and coordinated with the US due to the integrated nature of defense components. 'Any European weapon has American-made spare parts. And according to the rules of military-technical cooperation, permission to use a French missile with American chips embedded in it must be given,' he said. According to Peskov, Merz's remarks signal a lack of serious interest among EU states in resolving the Ukraine conflict through diplomacy. 'We see that the Europeans do not want peace. The Europeans are intent on further increasing pressure on Russia. They still dream that something can be achieved from Russia by pressure, not by willingness to listen. This is probably the biggest utopia that can be imagined on the European continent.'
