Germany’s public debt is projected to climb from 62.5% to 74% of GDP by 2030, driven by record defence and infrastructure spending, according to a report by the European rating agency Scope.
The report highlights the long-term fiscal impact of Berlin’s shift away from its traditional austerity stance. In March, the German parliament approved sweeping spending plans, including a €500 billion ($584 billion) infrastructure fund and a significant boost to defence expenditure.
Scope analyst Julian Zimmermann warned that growing outlays on interest payments, pensions, and healthcare would erode fiscal flexibility. “Despite rising borrowing, the pressure to consolidate the government’s core budget will increase over time,” he said.
According to Scope, the share of freely available funds in the federal budget could plummet from 24% to just 3% by 2035 unless structural reforms in areas such as pensions and the labour market are implemented.
While the infrastructure fund could lift Germany’s long-term growth potential from 0.7% to 1%, the economic stimulus from defence spending will be more limited.
For every euro invested in defence, only 50 cents is expected to directly benefit the domestic economy, the report noted.
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Adidas executives personally visited a small Indigenous town in southern Mexico to apologize for a shoe design criticised as cultural appropriation, pledging future collaboration to respect local heritage.
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California lawmakers have fast-tracked a redistricting plan giving Democrats a potential five-seat gain in Congress, with Governor Gavin Newsom signing the measure on Thursday to counter Republican efforts in Texas.
The U.S. National Guard has been deployed across Washington, D.C. following President Trump’s declaration of a public safety emergency, as federal authorities continue efforts to reduce crime and secure the capital.
North Korean leader Kim Jong Un praised troops who fought for Russia in Ukraine, calling them "heroic" during a ceremony honoring soldiers of the army's overseas operations.
The U.S. State Department confirmed that all 55 million visa holders are under continuous review, with potential revocations for security or legal violations.
Bangladesh and Pakistan have agreed to allow visa-free travel for holders of diplomatic and official passports, marking a major step in restoring relations after decades of restrictions.
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