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Economy on Shaky Legs
Leading economic research institutes predict weak growth for the German economy in 2025 and call for comprehensive structural reforms. Long-term growth prospects are threatened by structural issues.
US auto tariffs reduced to 15 percent
US tariffs on auto imports from the EU will be retroactively reduced to 15 percent, providing relief for car manufacturers. The trade agreement between the EU and the US is now fully implemented.
Klingbeil presents budget draft with record investments
Finance Minister Lars Klingbeil announces record investments for 2026, while the opposition criticizes sharply. The budget draft outlines massive expenditures to secure growth and jobs.
Budget Draft 2026: Expenditures and Debt Increase
The budget draft for 2026 anticipates increased expenditures and new debt, as the government aims to invest in the future. However, discussions in the Bundestag regarding the allocation of funds and debt accumulation are already underway.
Swiss Companies Relocate Production to the EU
A third of Swiss tech companies plan to relocate parts of their production to Germany due to high US tariffs. This could lead to a structural change in Switzerland and Europe.
Federal Government Plans 500 Billion Euros for Infrastructure
The federal government plans to take on 500 billion euros in new debt to promote infrastructure. However, there are concerns that the funds may not be used in a growth-promoting manner.
Black-Red Coalition Starts Autumn with Reforms
The black-red coalition faces challenges in the federal budget and reforms. Chancellor Merz and SPD parliamentary leader Miersch emphasize the need for compromises and swift decisions.
EU Commission Advances Mercosur Free Trade Agreement
The EU Commission has advanced the Mercosur agreement to promote trade with South America and introduced protective clauses for agricultural products to overcome resistance.
Evergrande Removed from the Stock Exchange
The Chinese real estate developer Evergrande has been removed from the stock exchange, symbolizing the decline of the industry. The crisis is heavily burdening the Chinese economy.
German economy shrinks by 0.3 percent
The German economy shrank by 0.3 percent in the second quarter of 2025, attributed to weak industrial production. The Bundesbank also expects no growth for the current summer quarter.
Pension Reform: Stability until 2030
The government is planning a pension reform to maintain the pension level until 2031, which faces criticism from scientists. The reform could increase the financial burden on the federal budget and jeopardize the competitiveness of the economy.
Klingbeil calls for budget cuts in the cabinet
Finance Minister Lars Klingbeil advocates for the new federal budget while simultaneously calling for budget cuts in the cabinet. He emphasizes the need for investments to strengthen the German economy.
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