Agreement in principle on 2025 German budget, says source close to coalition

Chancellor Olaf Scholz and his allies have struck an early-morning agreement in principle on Germany’s 2025 budget, a source close to the ruling coalition said early Friday, ending a protracted clash over spending.

“An agreement was reached” at the end of the night between Scholz, Vice-Chancellor and Economy Minister Robert Habeck of the Greens, and Finance Minister Christian Lindner of the pro-business FDP, who had been in talks since Thursday afternoon, the source said.

Details were not immediately available on the compromise, though it does include a plan to support growth.

Scholz will now have to present the plan to coalition parliamentarians in the morning.

The drawn-out conflict over the budget had threatened to topple the three-way coalition, and the agreement appeared to put an end to weeks of negotiations between Scholz’s Social Democrats (SPD), the Greens and the FDP.

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Germany face Spain and France take on Portugal in thrilling Euro 2024 quarters

Hosts Germany take on Spain in the first of two blockbuster quarter-final ties at Euro 2024 on Friday, with Kylian Mbappe’s France up against Cristiano Ronaldo’s Portugal in the late match.

Germany and Spain clash in Stuttgart at 6 pm with the host nation putting their hopes on the line against probably the best-performing side at the tournament thus far.

Spain, with the thrilling duo of Lamine Yamal and Nico Williams on the wings, have reached the quarter-finals with four wins in as many games, nine goals scored and just one conceded.

Germany, meanwhile, have also impressed on their run to the last eight, with Jamal Musiala outstanding in attack and Toni Kroos pulling the strings in midfield as he prepares to retire after the competition.

The match, a repeat of the Euro 2008 final won 1-0 by Spain in Vienna, therefore promises to be a thriller.

Meanwhile, at 9 pm on Friday, Portugal play France in Hamburg. 

READ ALSO: How (and where) to watch Euro 2024 quarter finals in Germany

New report shows disparities across German regions are shrinking

Economic and social differences across German regions are shrinking, new research shows. 

The government commissioned Equivalence Report 2024, which looks at the regional disparities across Germany, was adopted by the cabinet this week.

According to the report, differences between regions when it comes to economic and social factors have decreased in recent years, but those regions where the population is decreasing still face major challenges.  

In particular ‘equivalence indicators’ such as: municipal tax revenue, the unemployment rate, the number of crimes, the birth rate and life expectancy, the accessibility of the nearest supermarket and the share of forested areas within districts or cities were found to be levelling off across Germany.

But disparities intensified in other factors, such as: the number of skilled workers, the density of residential buildings, the ratio of children to day-care places, the proportion of single-person households and the old-age dependency ratio. 

Disparity in Germany, particularly between former east and former west states, has long been a point of contention.

READ ALSO: How does Germany’s ‘phantom border’ still divide the country?

Germany’s Economy Minister, Robert Habeck (Greens) suggested that the report showed significant improvements.

“I really think this is a decisive summary on the question of how Germany is doing”, the Economy Minister said, adding that it could be used to help recalibrate government funding policies.

Volkswagen rejects ‘detrimental’ EU tariffs on electric cars from China

German auto giant Volkswagen on Thursday said EU moves to impose provisional extra duties of up to 38 percent on Chinese electric car imports over subsidy concerns were “detrimental” to the European market.

“Countervailing duties are generally not suitable for strengthening the competitiveness of the European automotive industry in the long term – we reject them,” Volkswagen said in a statement.

Brussels announced the planned tariff hike last month at the conclusion of an investigation into Chinese state subsidies for electric vehicle makers potentially undercutting European manufacturers.

But auto groups in Germany responded negatively to the EU action against China, where many of them have significant business interests.

“The timing of the EU Commission’s decision is detrimental” to the European electric car market, where demand was weak, Volkswagen said.

READ ALSO: Germany’s Volkswagen considers job cuts as electric car shift stalls

Europe’s largest carmaker said the “negative effects of this decision outweigh any potential benefits for the European and especially the German automotive industry”.

Airbus wins satellite deal with German military

The German army has awarded Airbus a contract worth €2.1 billion for next generation SatcomBw 3 military communications satellites, the European aerospace firm said Thursday.

The contract, for deployment by the end of the decade, includes the prime contractor of two satellites “as well as the ground segment (receiving stations), launch and operation for 15 years,” Airbus said in a statement.

“At a time when Western democracies are challenged and where the European institutional space ecosystem is struggling, we are excited and grateful to develop and build this leading-edge system,” said Michael Schoellhorn, CEO of Airbus Defence and Space.

With reporting by Paul Krantz