Germany has ditched decades of fiscal restraint with a massive €500 billion spending plan, aiming to revive growth and bolster defence. With geopolitical tensions rising, Friedrich Merz calls it a "historic shift"—but critics warn of debt risks.
Germany’s parliament has approved a sweeping spending surge, marking a major shift from decades of fiscal restraint. Conservative leader Friedrich Merz secured support for the plan, which aims to boost economic growth and strengthen Europe’s defence amid rising geopolitical tensions.
The approved package includes a €500 billion fund for infrastructure and eases borrowing rules to expand defence spending. The move is a response to increasing concerns over European security, particularly regarding Russia and potential shifts in U.S. foreign policy. "We have for at least a decade felt a false sense of security," Merz told lawmakers, calling the decision a crucial step toward a new European defence strategy.
The Bundestag’s approval was decisive, with 513 votes in favour and 207 against. The legislation is expected to pass the Bundesrat on Friday. The markets reacted positively, with the euro and European shares rising in anticipation of the fiscal expansion.
While supporters hail the move as a turning point, critics warn of long-term risks, including rising debt and the need for structural reforms to ensure sustainable growth. Economists argue that cutting bureaucracy and increasing efficiency will be essential to making the most of Germany’s fiscal shift.
Japan has lost its decades long status as the global top creditor to Germany. A recent report suggests that a weakening yen, appreciating euro and American tariffs are responsible.
Five fishermen—three Peruvians and two Colombians—arrived safely in the Galapagos Islands on Saturday after spending 55 days adrift in the Pacific Ocean, according to the Ecuadorian navy.
UN Secretary-General Antonio Guterres and Pakistan's Prime Minister Shehbaz Sharif engaged in their second call this week to discuss rising tensions in South Asia, stressing the need for restraint and diplomatic solutions.
North Korea held its first Pyongyang International Marathon in six years, with foreign runners from China and Ethiopia. The event marked the country's gradual reopening post-pandemic, celebrating Kim Il Sung's birthday. The marathon symbolized North Korea's cautious return to normalcy.
Ford Motor Company is recalling more than 1 million vehicles across multiple models due to a software glitch that could cause the rearview camera to malfunction, increasing the risk of an accident.
A US ceasefire plan proposes a 60-day truce and phased hostage exchange. Hamas is reviewing the deal.
The U.S. urges Russia to accept a ceasefire and supports direct talks set for next week in Istanbul.
At least 21 people, including children, have died in floods triggered by heavy rains in Nigeria’s Niger state, officials said.
Think tanks from across the Turkic world gathered in the Turkish Republic of Northern Cyprus (TRNC) for the second edition of a major forum focused on regional cooperation, culture, and strategy.
AnewZ takes to the streets of Yerevan and Baku to ask a simple yet deeply complex question: How do you see peace between Armenia and Azerbaijan? In the first part of our special report, we hear the hopes, doubts, and scars still shaping people’s perspectives on both sides.
On May 28, the inauguration ceremony of Lachin International Airport was held.
A car drove into crowds of Liverpool fans celebrating the club’s Premier League title in the city centre on Monday evening, injuring dozens including 4 children. A 53-year-old man believed to be the driver was arrested at the scene.
EU ministers have greenlit a massive €150 billion defense investment fund—dubbed the Security Action for Europe (SAFE)—as the bloc ramps up its military readiness in response to Russia’s aggression and growing uncertainty over U.S. security guarantees.
Kyiv faced a large-scale Russian drone and missile assault overnight, with explosions and gunfire echoing throughout the city, forcing residents to shelter in subway stations.
A US ceasefire plan proposes a 60-day truce and phased hostage exchange. Hamas is reviewing the deal.
The U.S. urges Russia to accept a ceasefire and supports direct talks set for next week in Istanbul.
At least 21 people, including children, have died in floods triggered by heavy rains in Nigeria’s Niger state, officials said.
Think tanks from across the Turkic world gathered in the Turkish Republic of Northern Cyprus (TRNC) for the second edition of a major forum focused on regional cooperation, culture, and strategy.
Moroccan firefighters are battling wildfires for a fourth straight day in the Houara Forest near Tangier, as high temperatures and strong winds complicate efforts to contain the flames.
Ford Motor Company is recalling more than 1 million vehicles across multiple models due to a software glitch that could cause the rearview camera to malfunction, increasing the risk of an accident.
A US ceasefire plan proposes a 60-day truce and phased hostage exchange. Hamas is reviewing the deal.
The U.S. urges Russia to accept a ceasefire and supports direct talks set for next week in Istanbul.
At least 21 people, including children, have died in floods triggered by heavy rains in Nigeria’s Niger state, officials said.
Think tanks from across the Turkic world gathered in the Turkish Republic of Northern Cyprus (TRNC) for the second edition of a major forum focused on regional cooperation, culture, and strategy.
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