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Straits Times
5 days ago
- Business
- Straits Times
German Cabinet passes 2025 draft budget and framework for 2026
Germany's total defence spending will go up from €95 billion in the draft budget for 2025 to €162 billion in the budget framework for 2029. PHOTO: REUTERS BERLIN - Germany's Cabinet on June 24 approved a draft budget for 2025 and a budget framework for 2026 with record investments in both years to stimulate growth after Europe's biggest economy failed to grow for two consecutive years. The drafts include investments of €115.7 billion (S$171.9 billion) in 2025 and €123.6 billion in 2026, up from €74.5 billion in 2024. 'By 2029, we will increase the federal government's annual investments to almost €120 billion per year,' Finance Minister Lars Klingbeil said on June 24 . The draft budget for 2025 also includes the mid-term financial plan until 2029, which shows that Germany will raise defence spending to 3.5 per cent of economic output by 2029, funded through a nearly €400 billion borrowing programme. Germany's total defence spending will go up from €95 billion in the draft budget for 2025 to €162 billion in the budget framework for 2029. This investment surge will be possible thanks to a special €500 billion infrastructure fund and an exemption from debt rules for defence spending approved in March 2025 . 'With this budget and the €500 billion investment fund, we are setting in motion what we need now to ensure new economic strength, make our country modern and future-proof and to enable safe living in Germany in the future as well,' Mr Klingbeil said. From 2025 to 2029, Germany will borrow a total of €500 billion for its budgets, with additional €270 billion borrowed through its infrastructure fund, according to the draft budget and mid-term financial plan. Adding the funds to be borrowed with the defence fund created by the previous government when Russia invaded Ukraine in 2022, total borrowing in the five-year period would rise to €847 billion. After former chancellor Olaf Scholz's coalition collapsed in November 2024 , the last government ran out of time to pass the 2025 budget. Germany has been operating on a provisional budget since the start of the year. The budget committee will finalise details of the 2025 budget in September 2025 , when it should also be approved by lawmakers. The first draft of the 2026 budget should be approved on July 30, 2025 . It is to be discussed in parliament in September 2025 , then approved in the Lower House of Parliament in November 2025 and the Upper House in December 2025 , following the usual schedule. REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.
Straits Times
5 days ago
- Politics
- Straits Times
Berlin calls Iran strikes on US base ‘calibrated'
Germany's Foreign Minister Johann Wadephul expressed hope that the US and Iran will now enter talks to avoid further conflict. PHOTO: REUTERS BERLIN - Germany said on June 23 that Iran's retaliatory strikes on a US base were 'calibrated' and expressed hope that Tehran and Washington will now enter talks to avoid further conflict. German Foreign Minister Johann Wadephul told the ARD broadcaster that Iran's launching of multiple missiles at the United States' Al Udeid base in Qatar was a 'calibrated answer' to American strikes on three key Iranian nuclear sites. Mr Wadephul said he was also 'pleased that the American president has reacted in such a measured way' to Iran's strikes. In a post on X published shortly afterwards, Mr Wadephul said Iran's strikes were 'unacceptable' and said Germany 'stands in solidarity with our partners in the Gulf states'. In his comments to ARD he said that Iran's attack was 'to be condemned', but added it was 'not so strong or so uncontrolled that an escalation must follow'. '(Iran) is showing in an indirect way a certain readiness' for negotiations, he said. 'At this stage we can only repeat our demand to Iran to be ready for talks', he added, pointing to Mr Trump's latest statements in this regard. The eventual aim of any talks must be that 'Iran is permanently prevented from having nuclear weapons,' Mr Wadephul said. 'This would serve world peace, would serve Israel and Europe.' AFP Join ST's Telegram channel and get the latest breaking news delivered to you.
Straits Times
10-06-2025
- Politics
- Straits Times
Germany's Merz condemns Russian ‘terror against civilians' in Ukraine
A police investigator walking near an apartment building damaged by a Russian drone strike, in Ukraine's capital, Kyiv, on June 10. PHOTO: REUTERS BERLIN - German Chancellor Friedrich Merz on June 10 slammed Russian 'terror against the civilian population' in Ukraine after Moscow escalated its bombardments there. Speaking at a press conference with his Dutch counterpart, Mr Dick Schoof, Mr Merz called the recent Russian attacks 'the most serious war crimes' and said Russia had 'attacked no military targets but the civilian population'. Mr Merz said that Russia's latest actions were 'anything but a proportionate response to the very precise Ukrainian attacks on military airfields and infrastructure in the last week'. 'Russia wanted to create a bloodbath and the fact that this only happened in a limited way is thanks to effective Ukrainian defence,' he said, adding: 'Once again, Russia is escalating instead of negotiating'. Mr Merz's comments come ahead of a Group of 7 summit in Canada on June 15-17 and a Nato meeting later in the month, where allies will push US President Donald Trump to be more aggressive in punishing the Kremlin. Mr Schoof agreed on the importance of supporting Kyiv, saying that Ukraine was fighting not only for its own security 'but also for the security of Europe... after a war of aggression that was started by Russia'. On the question of new sanctions on Russia from the European Union, Mr Merz said he had been in touch with EU chief Ursula von der Leyen in recent days 'and I encourage her to introduce this new round quickly'. 'There will be further sanctions on the banking sector, in the energy sector,' he said. Mr Merz said that while Kyiv's allies were 'ready for negotiations at any time, if negotiations are refused – and they are being refused on the Russian side', then the response must be 'military strength and massive economic pressure'. Ukraine's allies must send 'a signal of strength and deterrence' to Russia, Mr Merz said. 'This is unfortunately the only language that Moscow understands in the current weeks and months.' AFP Join ST's Telegram channel and get the latest breaking news delivered to you.
Straits Times
01-06-2025
- Straits Times
Hospital fire in Germany kills three, patient suspect arrested
A police cordon at the Marienkrankenhaus hospital following a fire on June 1 in Hamburg, Germany. PHOTO: REUTERS BERLIN - German police said on June 1 that a 72-year-old patient had been arrested on suspicion of igniting a fire at a Hamburg hospital that killed three people and injured dozens more. The three casualties from the fire at the geriatric ward of the Marienkrankenhaus hospital were aged 84 to 87, and 34 others were injured, authorities said in an updated toll. The suspect will be presented before a judge on June 2 as investigators try to determine if he was suffering 'psychiatric' problems, police said in a statement. 'While interviewing witnesses it appeared that a 72-year-old patient could be strongly suspected of being at the origin of the fire,' police said. The fire began around midnight and threatened to spread to the first floor. 'Several elderly people with reduced mobility had to be evacuated along the corridors,' said fire service spokesman Lorenz Hartmann. AFP Join ST's Telegram channel and get the latest breaking news delivered to you.
