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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Protests continued into another day in Iran, with crowds returning to the streets despite mounting pressure from the authorities. By scale and spread, the unrest has entered its most significant phase so far.
On Tuesday, the U.S. dollar strengthened against major peers, while the euro fell following slower-than-expected inflation in Europe. Market movements were relatively subdued as investors focused on upcoming U.S. economic data.
U.S. President Donald Trump and his team are actively exploring options to acquire Greenland, with discussions including the potential use of the U.S. military, which is "always an option," according to a statement from the White House on Tuesday.
Leaders from the U.S. and European countries moved closer to finalising legally binding security guarantees for Ukraine following a “Coalition of the Willing” meeting in Paris on Sunday.
Germany’s foreign intelligence service secretly monitored the telephone communications of former U.S. President Barack Obama for several years, including calls made aboard Air Force One, according to an investigation by the German newspaper Die Zeit.
Israeli media report that Israeli Prime Minister Benjamin Netanyahu chaired a lengthy security meeting that reportedly focused on the country’s regional threats, including Gaza, Lebanon, and Iran.
At the end of last year, U.S. President Donald Trump was reported to have raised the Azerbaijan–Armenia peace agenda during a conversation with Israel’s prime minister, warning that if peace were not achieved, Washington could raise tariffs on both countries by 100 percent.
President Ilham Aliyev said 2025 has politically closed the Armenia-Azerbaijan conflict, as a Trump-era reset in U.S. ties, new transport corridors and a push into AI, renewables and defence production reshape Azerbaijan’s priorities.
Dmitry Medvedev has warned that Ukrainian President Volodymyr Zelenskyy could face the same fate as Venezuelan leader Nicolás Maduro, following what he described as a U.S. ‘abduction’ of the Venezuelan president.
U.S. President Donald Trump and his team are actively exploring options to acquire Greenland, with discussions including the potential use of the U.S. military, which is "always an option," according to a statement from the White House on Tuesday.
Leaders from the U.S. and European countries moved closer to finalising legally binding security guarantees for Ukraine following a “Coalition of the Willing” meeting in Paris on Sunday.
At least four people were killed and several others injured on Tuesday during fighting in Aleppo, northern Syria, state media reported. The government and the Kurdish-led Syrian Democratic Forces (SDF) are trading blame for the violence.
Ukrainian President Volodymyr Zelenskyy, French President Emmanuel Macron, and British Prime Minister Keir Starmer signed a declaration of intent on Tuesday outlining the future deployment of multinational forces in Ukraine.
The United States has presented Israel and Syria with a proposal for a security agreement that would establish a joint economic zone along the border, Axios reported on Tuesday.
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