Germany updates: Friedrich Merz in Finland for Nordic summit – DW – 05/26/2025
Finland shares a 1,340-kilometer border with Russia and has warned of Moscow's military build-up.
Health Minister Nina Warken is calling for Germany to impose tighter restrictions on the online prescription of medicinal cannabis.
Meanwhile, Greens parliamentary leader Katharina Dröge called a plan by Merz's government to abolish a 3-year accelerated path to German citizenship "senseless."
Follow this blog for a roundup of top news stories from Germany on Monday, May 26:
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DW
an hour ago
- DW
EU-US trade deal: Brussels settles — but at what price? – DW – 07/28/2025
European stock markets rose to 4-month highs after Donald Trump's trade deal with the EU. Investors are cheering the easing of uncertainty, but some fear Brussels conceded too much, which could haunt the bloc for years. European governments and firms breathed a collective sigh of relief after the US-EU trade deal was sealed on Sunday, following nearly four months of tariff uncertainty. Markets reacted positively: shares in European automakers jumped as much as 3% at Monday's opening, while broader EU stock indices reached four-month highs. European bond yields fell, signaling investor optimism that transatlantic trade tensions may be easing. Under the agreement, a 15% US tariff will be levied on most exports from the European Union, and the bloc will commit €514 billion ($600 billion) in investment to the US — its largest trading partner. Tariffs on some sectors have yet to be finalized While the new 15% rate is less severe than the 25% tariff imposed on European automakers in April and the 30% levy previously scheduled for August 1, it still represents a sharp increase from the 2.5% duty in place before US President Donald Trump's second term began. European Commission President Ursula von der Leyen told reporters that the new tariff rate was "a good deal," adding it would return "stability" and "predictability" to transatlantic trade. She cautioned, however, that "15% is not to be underestimated, but it is the best we could get." German Chancellor Friedrich Merz echoed that sentiment, calling the agreement a means to "preserve our core interests" and avert "an unnecessary escalation in transatlantic trade relations." Yet he admitted disappointment over the outcome, stating, "I would have very much wished for further relief." To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video While EU policymakers maintain they succeeded in negotiating Trump down from harsher tariffs, many European political and business leaders have condemned the new deal as damaging to the 27-member bloc. The EU had originally sought a 10% tariff. Hungarian Prime Minister Viktor Orban offered a biting critique during a Facebook livestream, saying: "Trump ate Ursula von der Leyen for breakfast, adding that the deal is "worse" than the one the United Kingdom clinched in May. Under that deal, most British exports still face a blanket 10% US tariff, while economists have warned the US-UK agreement lacks depth and leaves key sectors — like pharmaceuticals and agriculture — exposed. French Prime Minister Francois Bayrou called the deal a "dark day," lamenting how the EU, "an alliance of free peoples, brought together to affirm their common values and to defend their common interests, resigns itself to submission." Former high-profile European lawmaker Guy Verhofstadt, meanwhile, labeled the deal "scandalous" and a "disaster." In comments on X, he decried the lack of "a single concession from the American side" and criticized the EU's "poorly negotiated" approach. German MEP Bernd Lange, who chairs the European Parliament's trade committee, wrote on X that the deal was "lopsided" and that Brussels had made concessions that were "difficult to accept." French entrepreneur Arnaud Bertrand called the deal "a one-way transfer of wealth," adding that "it rather looks like the type of unequal treaties that colonial powers used to impose in the 19th century — except this time, Europe is on the receiving end." Ruben Staffa, foreign trade expert at the German Institute for Economic Research (DIW Berlin), said the deal marks "almost a tenfold increase in the average tariffs that applied before Trump's second term." The deal helps the EU sidestep a full-scale trade war that could have severely disrupted business confidence and consumer spending on both sides of the Atlantic. In anticipation of steeper US tariffs, Brussels had prepared €72 billion in retaliatory measures on American imports, including levies targeting aircraft and automobiles. Additional options reportedly included export restrictions on certain steel and chemical products, as well as possible moves against US services — particularly in Big Tech and finance — where the US holds a €109 billion trade surplus with the EU. While far from ideal, the agreement's economic impact is expected to be relatively mild. Citing data from the Kiel Institute for the World Economy (IfW), German business daily reported Monday that the tariffs would mean a 0.1% hit to the EU's gross domestic product (GDP). This is much lower than last year's Goldman Sachs estimate of a GDP cut of up to 1% in the event of a much lower 10% US tariff. Some sectors stand to benefit. Bloomberg Intelligence forecasts a €4 billion boost in earnings for the European auto sector, thanks to the reduction in vehicle tariffs from 27.5%. However, German firms are bracing for a substantial cost: estimates the new levies will burden them with €6.5 billion in additional expenses. Despite averting a trade war, Brussels has faced criticism for failing to extract more substantial concessions from Washington. Analysts argue the EU missed key opportunities to secure reciprocal tariff cuts on high-value European exports — including wine, spirits, and luxury goods. Some suggest that placing restrictions on US tech giants and financial institutions might have pressured Trump to lower tariffs on autos and pharmaceuticals. Critics also point to Brussels' early retreat from its retaliatory tariffs, which they say weakened the bloc's negotiating leverage. Others note that EU leaders failed to capitalize on US domestic politics — such as targeting exports from Republican strongholds or encouraging US companies to lobby the Trump administration from within. Internal divisions among EU member states, notably from Hungary, further fractured Brussels' position. Meanwhile, Trump's unpredictable tactics and aggressive tariff threats kept EU negotiators on the back foot throughout the talks. The deal is a preliminary framework rather than a comprehensive agreement. Over the coming months, negotiators from Brussels and Washington will draft a detailed text and set a date for the 15% tariff to take effect. Given Trump's track record of last-minute demands, as seen in US-Japan trade talks, the EU must brace for potential revisions. The deal requires approval from EU member states and scrutiny from the European Parliament, a process likely to span several weeks. Meanwhile, the Trump administration faces nearly a dozen lawsuits challenging the legality of his tariff policy, arguing that Trump lacks congressional authority to impose them unilaterally. Should any of these succeed, the tariffs could be voided, triggering fresh negotiations. Key sector-specific levies also remain unresolved. Brussels is still pushing for exemptions on wine and spirits — especially vital for France and Italy. Lower rates on pharmaceuticals and semiconductors are also under discussion. Finally, the EU's pledge to ease nontariff barriers — such as regulatory complexities and VAT hurdles — will require careful negotiation to ensure alignment with existing EU standards.
Int'l Business Times
an hour ago
- Int'l Business Times
EU Defends Trump Trade Deal Facing Backlash
The European Union on Monday vehemently defended its trade deal with President Donald Trump, with EU capitals and businesses sharply divided on an outcome some branded a "capitulation". "I'm 100 percent sure that this deal is better than a trade war with the United States," top EU trade negotiator Maros Sefcovic told journalists. European Commission President Ursula von der Leyen clinched the framework accord with Trump Sunday after dashing to Scotland as the August 1 deadline loomed for steep levies that threatened to cripple Europe's economy. EU exports are now set to face across-the-board tariffs of 15 percent -- higher than customs duties before Trump returned to the White House, but much lower than his threatened 30 percent. The 27-nation bloc also promised its companies would purchase energy worth $750 billion from the United States and make $600 billion in additional investments -- although it was not clear how binding those pledges would be. "This is clearly the best deal we could get under very difficult circumstances," Sefcovic said. Full details of the agreement -- and crucially which sectors could escape the 15-percent levy -- will be known in coming days, although the EU says it has avoided steeper tariffs on key exports including cars and medicines. But the reaction from European capitals -- which gave von der Leyen the mandate to negotiate -- ranged from muted to outright hostile. French Prime Minister Francois Bayrou said it was a "dark day" for Europe and said the accord was tantamount to "submission". Speaking for Europe's biggest economy, German Chancellor Friedrich Merz gave a warmer welcome to a deal he said had avoided "needless escalation". Industry groups in both countries made plain their disappointment however, with Germany's main auto sector body saying the 15-percent levy "burdens" carmakers while its VCI chemical trade association said the rates were "too high". Hungary's Prime Minister Viktor Orban attacked the deal in blunt terms, saying "Trump ate Ursula von der Leyen for breakfast". "It looks a bit like a capitulation," said Alberto Rizzi of the European Council on Foreign Relations (ECFR). "The EU accepted a fairly unbalanced deal," he added, saying it delivered a "political victory for Trump". Von der Leyen had faced intense pressure from EU states to strike a deal quickly with the bloc's biggest partner and protect a $1.9-trillion trading relationship. Defending Brussels' approach, Sefcovic warned that a no-deal scenario -- meaning a 30-percent tariff and the prospect of further escalation -- would have risked up to five million jobs in Europe. Throughout the months-long talks, Brussels prioritised stability and maintaining good relations with Washington, over escalation. That line of thinking has support: Italian Prime Minister Giorgia Meloni, a Trump ally, said the deal had avoided "potentially devastating" consequences. Markets in Asia and Europe welcomed the certainty and rose following the announcement -- reflecting the 4.4 billion euros ($5.1 billion) worth of daily transatlantic goods and services trade that were at stake. Hanging over the negotiations was the risk to other areas of cooperation -- like Ukraine -- if the EU descended into a trade war with its closest security partner. "It's not only about the trade -- it's about security, it's about Ukraine," Sefcovic told reporters Monday. Jacob Funk Kirkegaard of the Peterson Institute for International Economics acknowledged it was "clearly an imbalanced deal" if judged purely on trade terms. "But if you're trying to avoid worse national security outcomes, well then maybe the deal is not so bad," he said. The EU had sought to ramp up the pressure in the final stretch of talks, fearing a bad deal and higher levies, with countries approving a $109-billion package of counter-tariffs at the last minute. And states led by France were pushing for a more robust response including the option to deploy the trade "bazooka" known as the anti-coercion instrument. But the threat of retaliation was consistently framed by Brussels as a last resort should talks fail, and experts suggested the hardening stance may have come too late to make a real difference. "If the EU had played hardball at the very beginning, it probably could have got a better deal," ECFR's Rizzi told AFP.
DW
6 hours ago
- DW
Middle East updates: Israel says 120 aid trucks enter Gaza – DW – 07/28/2025
Israel has allowed a convoy of aid to enter from Egypt, the government said. Germany's Friedrich Merz is conferring with his Securty Cabinet amidst growing global condemnation of Israel's campaign in Gaza. DW has of B'Tselem, also known as the Israeli Information Center for Human Rights in the Occupied Territories, and Physicians for Human Rights Israel (PHRI) are due to present their latest report on the war in Gaza later on Monday. B'Tselem is a Jerusalem-based organization that focuses on human rights abuses in the Palestinian territories, and has expressed criticism of the Israeli government's policies in Gaza and the occupied West Bank. The Israeli government has said that 120 aid trucks having been allowed to enter Gaza, coinciding with a ten-hour pause in military operations in some areas, such as Al-Malawsi and Deir al-Balah. Last week, international criticism of Israel's conduct in Gaza reached a fever pitch as news of mass starvation, particularly of children, continued to circulate. There was also hefty criticism of the US-run and Israel-backed Gaza Humanitarian Foundation (GHF), one of the few aid organizations that was allowed to operate during Israel's months-long blockade, due to the reports of killings of hundreds of people waiting for aid at their distribution points. To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video The UN welcomed the news, a week after Secretary-General Antonio Guterres called what was happening in Gaza a "horror parallel in recent times." The body's Emergency Relief Coordinator, Tom Fletcher, said: "We welcome Israel's decision to support a one-week scale-up of aid, including lifting customs barriers on food, medicine and fuel from Egypt and the reported designation of secure routes for UN humanitarian convoys." Fletcher cautioned, however, that it still wouldn't be enough "to stave off famine and a catastrophic health crisis," before adding: "And no more attacks on people gathering for food." Israel has announced a ten-hour pause in military action for Monday following an increasingly widespread global outcry over the mass starvation in the enclave, which has been under a months-long blockade of aid by the Israeli military. The Security Cabinet of German Chancellor Friedrich Merz is set to meet on Monday afternoon to discuss Berlin's position on Gaza and Israeli conduct there. Also on Monday, two Israel-based NGOs are expected to present their findings after an independent investigation on rights abuses in Gaza.
