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TODAY IN GERMANY

Today in Germany: A roundup of the latest news on Thursday

Munich stadium set to be lit up in rainbow colours during the Euros, the Greens respond to new plans for compulsory military service, and more news from around Germany on Thursday.

Volkswagen headquarters in Wolfsburg.
Dark clouds hang over the Volkswagen headquarters in Wolfsburg. Photo: picture alliance/dpa | Julian Stratenschulte

Euro 2024 host stadium in Munich to display rainbow colours

The Euro 2024 host stadium in Munich will display rainbow colours to celebrate Christopher Street Day, the city’s pride weekend, UEFA confirmed to AFP on Wednesday.

The stadium, which will host the opening match of Euro 2024 between Germany and Scotland, will be lit up in rainbow colours on June 22rd and 23rd.

There are no games planned in Munich for that weekend.

UEFA told AFP the arena would be illuminated in rainbow colours on request of the stadium management.

The stadium facade features more than 300,000 LED lights which can be in various colours to commemorate sporting, political or other events.

The external stadium lighting made headlines in 2021 when UEFA, the organisers of Euro 2024, rejected a request from the city of Munich to light it in similar colours during a match between Germany and Hungary, saying it was a “political statement”.

READ ALSO: Germany turns rainbow-coloured in protest at UEFA stadium ban

The request was made in response to a law passed in Hungary restricting LGBT+ content for minors, which critics say was too broad and could impinge on freedoms of expression.

Germany plays Group A rivals Hungary again on June 19th.

Germany warns of ‘trade war’ over EU’s China EV tariffs

The EU’s threat to hit Chinese electric cars with additional tariffs following an anti-subsidy probe risks a “trade war”, Germany said Wednesday, as the country’s auto giants warned the move would backfire.

“The European Commission’s punitive tariffs hit German companies and their top products,” German Transport Minister Volker Wissing said on X, formerly Twitter.

“Cars must become cheaper through more competition, open markets and significantly better business conditions in the EU, not through trade war and market isolation.”

After launching an investigation last year, the EU Wednesday threatened to impose extra tariffs of up to 38 percent on Chinese electric car imports from next month, unless Brussels and Beijing can resolve the issue.

Ford factory in Cologne

Cars are assembled on a production line at a Ford factory in Cologne, Germany. Photo: picture alliance/dpa | Rolf Vennenbernd

China is an important market for Germany’s carmakers — in particular Volkswagen, Europe’s largest auto manufacturer — and industry figures have lined up to warn that new tariffs could trigger retaliatory measures.

Chancellor Olaf Scholz himself in May noted that half of EVs imported from China were produced by Western manufacturers.

READ ALSO: Germany unveils new approach to more ‘assertive’ China

Representatives from the German car industry also lined up to criticise the move.

“The negative effects of this decision outweigh any potential benefits for the European and especially the German automotive industry,” a Volkswagen spokesman said in a statement.

Meanwhile Hildegaard Müller, president of the VDA auto industry association, said the tariffs would not solve the challenges facing the sector and called on politicians to instead make Europe a more attractive place for manufacturers. 

Greens ‘open to discussion’ on compulsory military service

In a distinct break with the party’s history of pacifism, the Greens have said they are willing to discuss proposals for reintroducing military conscription for young men in Germany. 

“The security situation in Europe has changed fundamentally,” party leader Omid Nouripour told DPA on Wednesday after proposals for compulsory service were set out by Defence Minister Boris Pistorius (SPD).

“Accordingly, we must ensure that our Bundeswehr is well-positioned, both in terms of equipment and in terms of personnel.”

However, Nouripour said the proposals should be discussed “with society as a whole” and that joining the military should also be made more attractive.

Speaking to DPA, Greens’ security spokesperson Sara Nanni called Pistorius’ proposal a “good start to a debate” but said the fact that only men were included “would not be in keeping with the times”.

Under plans unveiled by the Defence Ministry on Wednesday, young men in Germany would be required to fill in a questionnaire about their health and willingness to serve in the military. Women could also choose to fill in this questionnaire, but wouldn’t be required to. 

Based on the responses to an estimated 400,000 questionnaires, around 40,000 new recruits would be picked per year and signed up to complete at least six months of military service. 

READ ALSO: Is Germany gearing up to reintroduce compulsory military service?

Germany’s Uniper ‘awarded €13 billion’ for lost Russian gas

German energy giant Uniper said Wednesday a tribunal had awarded it over €13 billion in damages from Russian state energy company Gazprom for its failure to deliver gas.

The ruling gave Uniper “the right to terminate the contracts and awarded it an amount of more than €13 billion in damages for the gas volumes not supplied”, the company said in a statement.

It was not clear, however, “whether significant amounts are to be expected” from Gazprom, CEO Michael Lewis said in the statement.

Gazprom steadily dwindled gas supplies to Germany following Moscow’s 2022 invasion of Ukraine in apparent retaliation for Western sanctions on Russia.

The diminishing volumes sent gas prices soaring, pushing Uniper — Germany’s biggest importer of the fuel — to the brink of bankruptcy.

Uniper reported a €40 billion net loss for the first nine months of 2022, one of the biggest losses in German corporate history.

Uniper headquarters in Düsseldorf

The Uniper headquarters in Düsseldorf. Photo: picture alliance/dpa | Federico Gambarini

With Russian supplies slashed, Uniper has been forced to pay high prices on the open market.

The German government stepped in to nationalise Uniper over fears its failure could send shockwaves through Europe’s top economy.

Uniper initiated the legal action against Gazprom at the Stockholm-based tribunal in November 2022 over the Russian company’s failure to delivered agreed volumes of gas.

READ ALSO: Germany nationalises subsidy of Russian energy giant Gazprom

Although Gazprom completely stopped supplying Uniper with gas in August 2022, the supply contracts “were still legally in force and…  would have continued to exist until the mid-2030s”, Uniper said.

The tribunal’s ruling provided “legal certainty”, CEO Lewis said.

With reporting by DPA

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TODAY IN GERMANY

Today in Germany: A roundup of the latest news on Friday

Finance Minister slams the brakes on budget negotiations, German MP apologises for social media post on footballers' skin colours, DB presents plans for a new ICE route in Swabia, and more news from around Germany on Friday.

Today in Germany: A roundup of the latest news on Friday

Finance Minister rejects calls for compromise in budget debates

As the governing coalition parties clash over next year’s budget, Finance Minister Christian Lindner has reiterated his unwillingness to take on additional debt in order to avoid spending cuts. 

“You don’t have to lift the debt brake, you have to stop this distribution policy,” he told The Pioneer on Thursday.

“We don’t have a revenue problem – we will soon exceed the one trillion euro mark in tax revenue per year. It’s about shifting in the budget away from consumption and the past and towards investment and the future.”

On Wednesday, Lindner had signalled that the government could miss its July 3rd deadling for finanalising a draft budget for the coming year. 

The Finance Minister is pushing to maintain the constitutional debt brake, which caps borrowing at 0.35 percent of GDP per year. However, with an estimated gap of between €25 billion and €50 billion between Germany’s tax intake and planned spending, this could mean severe cuts that several departments are unwilling to sign up to.

READ ALSO: Germany’s coalition government in deadlock over 2025 budget

Bundestag Vice President apologises for social media post on footballers’ skin colours 

Bundestag Vice President Katrin Göring-Eckardt, of the Greens, apologised and deleted a tweet commenting on the skin colour of the German national football team’s players after criticism. 

Shortly after the German team’s 2-0 victory against Hungary in a Euro 2024 match on Wednesday, the Green politician wrote on X: “This team is really great. Imagine for a moment if there were only white German players.” She included several rainbow emojis in her post.  

However, Göring-Eckardt received major backlash, with many accusing her of racism. 

After later deleting the post, Göring-Eckardt said she was referring to a survey published a few weeks ago by the WDR program “Sport Inside,” which found that one in five respondents would prefer if the German national team had more “white” players.

In an apology tweet issued on Thursday she said: “I was upset that 21 percent of Germans would find it better if there were more ‘whites’ in the national team. I’m proud of this team and hope that we can still convince the 21 percent.”

Extremism researcher Ahmad Mansour wrote in response: “Anyone who addresses the skin colour of the players in the German national team is engaging in racism, regardless of the motivation behind it.”

House prices continue to drop in Germany, official figures show

The prices of residential property in Germany continued to decrease in the first quarter of 2024, new figures from the Federal Statistical Office (Destatis) show.

Compared with the same period in 2023, prices were down by an average of 5.7 percent across Germany. 

It signals a drop in prices compared with the respective quarter of the previous year for the sixth consecutive quarter. 

Compared with the fourth quarter of 2023, residential property prices were down 1.1 percent on average in the first few months of this year. 

READ ALSO: Is it a good time to buy a home in Germany?

Transportation sector emissions could cost Germany billions

Failure to meet climate protection targets in the transport sector could prove very costly for German taxpayers, according to a new study by Transport & Environment (T&E) that was announced Thursday.

The German government abolished its sector targets for emissions reductions earlier this year, following threats about possible driving bans by Transport Minister Volker Wissing.

READ ALSO: Has Germany avoided ‘driving bans’ by loosening its climate rules?

But according to T&E, a European organisation for clean transport, emissions reductions at the EU level still apply and shortcomings could result in hefty fines.

T&E analysed the drafts for the national climate plans (NECPs) and concluded that without immediate measures, twelve EU countries will miss their national climate targets, with Germany and Italy faring the worst.

Traffic jams on German motorway

Traffic jams build on the motorway between Hamburg and Flensburg. Photo: picture alliance/dpa | Axel Heimken

The German government alone would have to spend up to €16.2 billion on emissions certificates if it stays on its current course.

This would hit the federal government hard, as it currently has to plug a €40 billion euro hole in its budget for 2025.

The transport sector is primarily responsible for Germany’s failure to comply with EU climate protection commitments.

Meanwhile, the sales of new electric cars fell in Europe in May, car manufacturers announced Thursday, while the number of hybrid vehicles rose. While the European Union plans to ban the sale of combustion-powered cars by 2035, electric car sales have been sluggish since the end of 2023, mainly due to a lack of affordable models.

Deutsche Bahn to present new plans for Augsburg-Ulm route

After more than five years of planning, DB is presenting its recommendations for the new ICE route between Augsburg and Ulm on Friday afternoon.

The new high-speed line is intended to replace the existing long-distance route, which is now around 170 years old.

“The route between Ulm and Augsburg is one of the busiest routes in southern Germany,” DB said in a statement. It is part of the European main line from Paris to Budapest, and in Germany the route is important for connections between Munich to Stuttgart.

The expansion should reduce the journey time between Augsburg and Ulm from the current 40 minutes to less than half an hour.

READ ALSO: What to know about Deutsche Bahn’s summer service changes

DB planners have been analysing a number of route options since 2019. At the end of May, the regional government in Swabia finalised the regional planning procedure and declared three main variants to be possible, while two of the options were shelved.

With reporting by Paul Krantz and Imogen Goodman

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