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Germany
Nvidia CEO Jensen Huang warned that Germany is lagging in the artificial intelligence race, urging faster implementation of AI by policymakers. At the upcoming Invest in Germany summit, Chancellor Friedrich Merz will announce a joint AI pact and significant funding to enhance Germany’s technological competitiveness.
The far-right Alternative for Germany (AfD) secured a stronghold in the recent Mecklenburg-Western Pomerania election, highlighting how Europe’s energy crisis is influencing political landscapes. With major elections approaching in France and Italy, rising fuel prices are propelling populist agendas across the continent.
Germany’s final state elections have significantly altered the political landscape, with the Left party securing 25.7% of the vote in Berlin, while the AfD leads in Mecklenburg-Western Pomerania with 38.2%. The CDU faced heavy losses, and SPD’s Manuela Schwesig could remain in office despite the AfD’s success.
During the EU-Western Balkans summit, momentum for EU enlargement was underscored by Hungary’s decision to lift its veto on Ukraine’s accession negotiations. António Costa noted that upcoming talks will showcase renewed European unity, particularly ahead of the June summit, despite ongoing challenges in the accession process.
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.
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.
The European Commission is shifting towards a firmer stance on China, spurred by China’s threat of retaliation against the EU’s Made in Europe legislation. On 29 May, EU Commissioners will debate a new strategy amid rising pressures from industry and economic threats perceived from Beijing, signalling potential changes in trade policy.
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