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Germany
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.
US President Trump has intensified his criticism of German Chancellor Friedrich Merz, urging him to focus on the Russia-Ukraine conflict rather than the Iran war. Trump’s remarks follow Merz’s assertion that the US is being “humiliated” by Iran, and highlight ongoing tensions over NATO troop presence in Europe.
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Amid all the chaos in the world, it’s important to remind yourself there are plenty of great things happening, too. This week we’re looking at the great efforts in Germany in turning sewage into shipping fuel.
Volkswagen and BMW have reported booming sales in the United States as Donald Trump is set to announce a new wave of US tariffs on non-American goods.
The German Bundestag approved a €500 billion fund to boost defense and infrastructure spending, marking a significant shift from the country’s traditional fiscal conservatism. The legislation proposes easing Germany’s strict debt rules, allowing increased borrowing to enhance military capabilities and stimulate economic growth.
Germany’s Bundestag is poised to vote on a significant fiscal package that proposes amendments to longstanding debt policies, aiming to facilitate increased defence spending and establish a €500 billion infrastructure and climate fund.
The vote is seen as a response to Russia’s advances in Ukraine as the United States makes clear Europe can no longer rely on US protection from Russia.
Supporters of lifting the debt restrictions to boost defence spending say it’s essential for European security but there is also opposition. The decision could influence broader European defence initiatives, like the EU’s proposed €800 billion ReArm Europe fund.
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