
Merz Signals Strained U.S.-German Ties as Defense and Trade Risks Rise
Merz says unconditional transatlantic friendship may be over, highlighting defense spending, trade risks and Germany’s 2026 growth outlook.

Merz says unconditional transatlantic friendship may be over, highlighting defense spending, trade risks and Germany’s 2026 growth outlook.

German President Steinmeier urges Europe to confront geopolitical challenges posed by Russia and the US and warns of rising far-right influence ahead of key regional elections.

Germany's 2027 budget plan raises spending by 6% and borrowing to €118.7 billion, with defense funding up 32.7% amid security concerns over Russia.

Germany faces a 4.3 million worker deficit by 2036 due to baby boomer retirements and reduced migration, according to the Institute of the German Economy.

Oxfam reveals a 56% rise in CEO pay among Germany’s DAX 40 firms since 2019, while worker wages lag behind inflation and social inequality grows amid economic pressures.

The Central Bank keeps the key rate at 14% citing persistent inflation in food prices and external risks, despite overall inflation easing in early 2024.

Uzbekistan accelerates Asakabank’s privatization by halting non-core operations and transferring key assets to state agencies, with EBRD acquiring a 15% stake ahead of a 2025 privatization deadline.