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Germany
Péter Magyar, Hungary’s Prime Minister, will meet German Chancellor Friedrich Merz on Tuesday and French President Emmanuel Macron on Wednesday. This tour focuses on restoring Hungary’s relations with the EU, following a political agreement to unlock €16.4 billion in blocked EU funds.
Germany plans to acquire a 40% stake in tank and weapons maker KNDS, which is currently under French control. Following an initial public offering, Germany aims to reduce its stake to 30% within two to three years while gaining rights equivalent to those of the French state.
Former German Chancellor Angela Merkel received the European Order of Merit on Tuesday. In her acceptance speech, she emphasised that Europe can no longer assume peace and security, highlighting concerns over Russia’s invasion of Ukraine and shifting US security policies that indicate a loss of established certainties.
Germany’s far-right Alternative for Deutschland (AfD) party, led by Ulrich Siegmund, is advocating for consistent deportations and free Russian lessons in Saxony-Anhalt. The party’s manifesto, ahead of September elections, emphasises a significant shift in migration policy and calls for lifting sanctions against Russia.
Italian Prime Minister Giorgia Meloni and Ukrainian President Volodymyr Zelenskyy have agreed to enhance defence cooperation, focusing on drone production after discussions in Rome. No specific details were released; however, both leaders expressed commitment to strengthening joint initiatives in defence amidst ongoing Russian strikes on Ukraine.
The US and Israel intensified military actions against Iran following President Trump’s ultimatum to “completely obliterate” Iranian energy sites unless the Strait of Hormuz reopens to international shipping. Meanwhile, Lebanon’s Justice Minister described the escalating Israeli ground incursions as an “occupation,” amid a worsening humanitarian crisis.
EUROPE MORNING BRIEFING
German Chancellor Friedrich Merz’s CDU party lost the Baden-Württemberg state election yesterday, with the Green party leading at 30.2%. This morning, polling indicates a decline in Merz’s popularity amid broader trends in European leadership.
German Chancellor Friedrich Merz will visit China next week with a large business delegation, aiming to strengthen economic ties amid rising Chinese competition for Germany’s car makers. He emphasized the importance of balancing cooperation and competition in foreign economic policy.
German Vice-Chancellor and Finance Minister Lars Klingbeil stated that failing to advance the digital euro is detrimental to Europe, urging swift progress ahead of a meeting with euro area ministers in Brussels. The proposal currently faces a deadlock in the European Parliament.
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