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Reuters
26 minutes ago
- Reuters
German government to approve 2026 budget with record investment and borrowing surge, sources say
BERLIN, July 28 (Reuters) - The German government will on Wednesday back a 2026 draft budget which includes record investment of 126.7 billion euros and borrowing of 174.3 billion euros as part of its fiscal bazooka for infrastructure and defence, finance ministry sources said. Germany is throwing off decades of fiscal conservatism in the hope of reviving economic growth, modernising its crumbling infrastructure and scaling up military spending, as Europe's biggest economy has gone from economic powerhouse to the euro zone's laggard. It is the only G7 economy that failed to grow for the last two years and the government forecast in the spring that it would stagnate again this year. The sources said that with the budget plans, the economic environment should improve noticeably over 2025 and 2026 compared with those forecasts. The 2026 draft budget comes together with a medium-term financial framework until 2029, with the whole package expected to be approved by the cabinet. The budget discussions will then start in parliament at the end of September before expected approval in both houses of parliament at the end of the year. The 2026 draft budget, with total spending of 520.5 billion euros ($606.80 billion), includes 126.7 billion euros ($147.71 billion) in investments earmarked for the modernisation of the country. That is an increase from 74.5 billion euros in 2024 and 115.7 billion euros in 2025. The investment surge in 2026 and subsequent three years will be possible thanks to a special 500 billion euro ($583 billion) infrastructure fund and an exemption from debt rules for defence spending approved in March. The special fund for infrastructure, which is also excluded from Germany's "debt brake" that limits borrowing to 0.35% of GDP, will add borrowing of 58.9 billion euros in 2026. For defence, the 100-billion-euro special fund created by former Chancellor Olaf Scholz following Russia's invasion of Ukraine, which will be exhausted in 2027, will add 25.5 billion euros in borrowing in 2026. In the core budget, borrowing will go up from 33.3 billion euros in 2024 to 89.9 billion euros in 2026, the sources said. Adding those three components, total borrowing in 2026 will be 174.3 billion euros ($203.20 billion). It compares with total borrowing of 50.5 billion euros in 2024, under the previous government. Interest expenses will rise more sharply than previously forecast, the sources said, forecasting an increase to 66.5 billion euros in 2029, which compares with the 61.9 billion previously expected. Germany will raise defence spending to 3.5% of economic output by 2029, sources said on Monday. After low spending following the end of the Cold War, Germany complied with the NATO defence alliance's target of 2% of GDP for the first time in three decades in 2024 due to Scholz's special fund. NATO countries committed in June to spend 2.8% of GDP on defence in 2026 and then increase it to 5% - a new target to be achieved over the next 10 years, representing a jump worth hundreds of billions of dollars a year from the current goal. Germany's total defence spending will go up from 95.1 billion euros ($110.90 billion) in the draft budget for 2025 to 161.8 billion euros ($188.67 billion) in 2029, the sources said. Germany would be able to borrow a total 380 billion euros for defence between 2025 and 2029 thanks to debt brake reform from March, they said. ($1 = 0.8519 euros)


BBC News
26 minutes ago
- BBC News
Wong calls for T20 finals day revamp
Warwickshire's Issy Wong would like to see both women's and men's teams share the same stage for the T20 Blast Blaze and Warwickshire played an eliminator at the inaugural women's Finals Day on Sunday to see who would meet group winners Surrey, who qualified automatically for the Bears beat The Blaze, but then had less than an hour to prepare for the final which Surrey won by five wickets at the Kia Oval. The men's Finals Day has featured two semi-finals and a final since its inception in 2003."For the finals, can we maybe mix the men's and women's and have a semi-final day and a final day, because we've just played a game 45 minutes before," Wong told BBC Radio WM. She added: "We earned our place in that final and to have the opportunity to attack it on fresh legs would be a fantastic thing for the competition because those finals should be played to the highest standard."An ECB-led restructure fully aligned women's domestic cricket with the men's county game for the first time this top-tier women's county sides were chosen to contest the inaugural T20 Blast and One-Day Cup competitions above a 10-team second tier."In terms of how the county structure has taken off, I couldn't be more pleased with how I feel the game is growing, and it just keeps on growing every year," Wong said."Today was an example that if you put our game on the biggest stage and you market it well, people will come because it's entertaining."Wong fell out of favour with selectors after making her England debut in 2022, with World Cup-winning coach Mark Robinson critical of how she was managed as an international she looked back to her best in Sunday's eliminator, top-scoring with a 38-ball 59 before removing England star Tammy Beaumont and Scotland captain Kathryn Bryce cheaply on her way to figures of 4-14."I've loved every second of playing this year," Wong said."You can't come in and have a bad day really because whatever you need someone will give, and it's been a fantastic place to play cricket this year."


Daily Mail
26 minutes ago
- Daily Mail
Why Lionesses' Euro's victory will help end England men's trophy quest: Gareth Southgate's sports psychologist reveals key to women's success - and has a brutal message for their critics
England's men's football team could learn lessons from the Lionesses if they are to win their first major trophy since 1966 next year, Sir Gareth Southgate 's favourite sports psychologist told MailOnline today. Michael Caulfield, a long-time friend and confidante of the former England manager, believes the women's triumph could be a 'turning point' for Thomas Tuchel 's men. He also believes that the Three Lions' German manager and the FA should also take note of the Lionesses' 'joy' at representing their country. 'If the men's team triumph [next summer], I genuinely believe the Lionesses dramatic win in Basel will prove to be a huge turning point, as they have a won a tournament away from home, and everyone in the men's set up will subconsciously note that too. This win was so important for both teams', Mr Caulfield told MailOnline. He added: 'I hope everyone at the FA realises that the more you allow people to be themselves, be likeable, be proud of who you are and what you stand for, then people come with you'. Mr Caulfield also has a strong message for 'cynical' critics of the victorious women. 'We should simply be saying 'thank you' and joining in the celebrations. If you don't like women's football, or seeing women triumph, inspiring countless young girls to take up football... then don't watch it, or comment on it, you won't be missed, but you might be missing out', he said. The Prime Minister's official spokesman has said this afternoon that the men's football team 'should absolutely take a lesson' from the Lionesses on how to win tournaments. He added: 'Yes, it can't be as fast and as furious as the men's game, in the same way that the Kenyan female athlete, Faith Kipyegon, couldn't break the four minute mile recently, but that does not stop last night's triumph from being joyous'. It came as Beth Mead's father Richard had a message for critics, tweeting today: 'To all the snipers out there criticising women's football, guess what my daughter is a double European champion, how many people can say that, well done lionesses'. Mr Caulfield, who works for Brentford in the Premier League, is one of the country's top sports psychologists with over 30 years experience. He was first employed by Southgate when he was manager at Middlesbrough in 2006 and they have remained close. Millions celebrated as the Lionesses won back-to-back European Championships, with a women's World Cup final in between. The men have gone close to winning both those titles in recent years but never made the final step. Mr Caulfield said: 'What can the Three Lions learn from The Lionesses? Well, Sir Gareth Southgate started it, I hope everyone at the FA realises, that the more you allow people to be themselves, be likeable, be proud of who you are and what you stand for, then people come with you, and for those who simply want to moan, well, you can never win an argument with a cynic, so don't try'. The team are flying into Britain this afternoon ahead of a reception at Downing Street hosted by Angela Rayner with PM Sir Keir Starmer in Scotland meeting Donald Trump. Despite the success of the Lionesses, some continue to compare the men's and women's games unfavourably. Mr Caulfield says he 'cannot understand' it. 'Comparison is the thief of all joy and never has that lovely old phrase been more apt following the joyous and determined triumph by the most admirable and likeable of teams, The Lionesses. 'The whole evening and tournament were joyous, the drama was joyous, Chloe Kelly was joyous, the backstories are joyous, the never say die attitude was joyous, the commentaries were joyous, the reaction is joyous, and they haven't even made it to Buckingham Palace yet. 'For the life of me, I cannot understand the need or point of comparing the Lionesses to The Three Lions, and if you don't like women's football, or seeing women triumph, inspiring countless young girls to take up football, therefore taking exercise, getting off their phones, being part of a club, team, community and improving every aspect of their life, then don't watch it, or comment on it, you won't be missed, but you might be missing out'. He added that the Lionesses are 'uniting people from all walks of life in the process, and giving us all a break for the daily worries we all face in our own lives. We should simply be saying 'thank you' and joining in the celebrations'.