Latest news with #MarkusWacket
Yahoo
07-05-2025
- Business
- Yahoo
Exclusive-German defence minister seeks annual budget hike to over 60 billion euros, sources say
By Sabine Siebold, Markus Wacket and Holger Hansen BERLIN (Reuters) - German Defence Minister Boris Pistorius is seeking a drastic increase in the country's annual defence budget to over 60 billion euros ($68.21 billion) starting in 2025, two sources familiar with the matter told Reuters. In 2024, the regular defence budget was 52 billion euros. It was supplemented by 20 billion euros from a special 100-billion-euro fund created in response to Russia's invasion of Ukraine. The fund aims to bring Germany's long neglected military back up to speed but will be fully used up by 2028. Pistorius wants the budget hike to take effect in 2025, one of the sources said on Tuesday, adding that the minister aimed to keep annual spending at over 60 billion euros for the coming four years and that it would be covered by the government's medium term spending plans. A second source, also speaking on condition of anonymity, indicated on Wednesday that the defence ministry was aiming for a budget of some 63 billion euros in 2025. This would represent a 10 billion euro increase from the budget proposal under former Chancellor Olaf Scholz's coalition before it collapsed last November. "Still, the challenge will be how the money can be spent in a timely way," the source added, citing the common issue that the defence industry often struggles to ramp up production fast enough to accommodate unscheduled orders. In 2024, the defence ministry had difficulties meeting the NATO target of 2% military spending as a proportion of national output due to a slow disbursement of funds. A senior government source, asked on Wednesday about the reported target of "over 60 billion euros", was less specific but said the figure was in the right ballpark. A spokesperson for the defence ministry, asked to comment on the matter, said the budget process for 2025 had not been completed. She would neither confirm nor deny the reported target of over 60 billion euros. MAJOR TURNAROUND Pistorius, a Social Democrat, is the only minister from the previous government to retain his position in the new coalition led by conservative Chancellor Friedrich Merz, which took office on Tuesday after months of negotiations. Germany and other European nations are under heavy pressure from the Trump administration to ramp up defence spending. Europe's NATO members also feel less able to rely on the U.S. security guarantee than in the past as they face off against a more aggressive Russia. In a major turnaround for a country that has traditionally advocated strict fiscal discipline, Germany, Europe's largest economy, recently approved plans for a massive spending surge. The fiscal plan includes 500 billion euros ($569 billion) for a special fund for infrastructure and also largely removes defence investment from the domestic rules that cap borrowing. ($1 = 0.8797 euros) (Reporting by Sabine Siebold, Markus Wacket and Holger Hansen; Editing by Sabine Wollrab, Madeline Chambers and Gareth Jones)
Yahoo
29-04-2025
- Business
- Yahoo
Germany's SPD to decide on backing coalition with Merz
By Riham Alkousaa and Markus Wacket BERLIN (Reuters) - Germany's Social Democrats will announce on Wednesday whether members have backed a treaty for a coalition with the CDU/CSU conservatives, potentially clearing the last hurdle for the formation of a new government in Europe's largest economy. The conservatives-SPD coalition was the only path to a majority government after both major parties suffered steep losses in the February federal election. They have both ruled out governing with the far-right Alternative for Germany which scored a historic second place. Over the last two weeks, SPD members have voted on the coalition treaty drawn up by leaders of both parties. Their approval, which is widely expected, would enable conservative leader Friedrich Merz to become chancellor on May 6. If SPD members vote down a coalition treaty drawn up by the leaders of both parties, it would throw German politics deeper into disarray just five months after the collapse of the last majority government. Reviving Europe's largest economy, now in its third year of contraction, is a top priority for Germany's next government, amid fears that a trade war sparked by U.S. President Donald Trump's tariff announcements could further hurt its export-driven economy. Despite the SPD's historic low of just 16.4% of the vote, political experts say it secured key gains in the deal, leveraging the conservatives' lack of alternative paths to the chancellery for the next four years. The next coalition aims for example to invest heavily in Germany's infrastructure, raise the minimum wage to 15 euros ($17.01) per hour, keep pensions level at 48% of the current average wage and extend a cap on rents, according to the contract. The SPD also secured the coveted finance ministry, along with six other cabinet posts. The SPD's concessions on tighter migration rules and cuts to unemployment benefits as well as its failure to secure tax hikes for the wealthy have, however, drawn sharp criticism from the party's influential Jusos youth wing, whose leaders have urged members to reject the deal. A rejection by SPD members would leave few viable options: the party could seek to renegotiate the deal, although this is deemed unlikely as many conservatives feel their party already made too many concessions. Parties could consider forming a minority government although that would foster instability. Germany could hold new elections with the possibility the AfD comes in first place after surging in polls in recent weeks. Or the conservatives could reconsider their veto on forming a coalition with the AfD, also widely deemed unlikely. "A no vote would be a disaster for the entire party leadership, and they would then likely have to resign," Jun said. ($1 = 0.8819 euros) (Writing by Riham Alkousaa; Editing by Sarah Marsh and Sharon Singleton)
Zawya
05-02-2025
- Automotive
- Zawya
Germany likely to miss 2030 climate target, government advisers say
BERLIN - Germany will probably fail to achieve its 2030 climate targets unless significant policy changes are implemented, government climate advisers said in a study released on Wednesday. The independent Council of Experts on Climate Change, which must review the country's climate performance at regular intervals, said Germany won't meet its goal to cut 65% of greenhouse gas emissions by 2030 compared with 1990, mostly due to the transport and construction sectors. The council had already said last year that Germany was likely to miss its binding greenhouse gas targets. Ahead of national elections on Feb. 23, the council said that the report formulates requirements for an updated climate action program that a new government must present within one year of taking office under the Climate Protection Act. Even though greenhouse gas emissions have been declining recently, contributing to the overall achievement of the annual targets, the pace would have to increase by 50% from this year to hit the 2030 target, according to the council. The council noted progress in emissions reduction in the energy sector and to some extent in industry, which was recently hit by the energy crisis and the economic downturn in Germany. Emissions decline gained pace in 2014-2023 compared to 2010-2019, but the outlook remains bleak for the construction and transport sectors, as still too many internal combustion engine cars are being registered, said the council. (Reporting by Markus Wacket, writing by Andrey Sychev, Editing by Miranda Murray)
