Germany's next chancellor, Friedrich Merz, on Monday announced his first major cabinet nominations. He selected energy executive Katherina Reiche as the likely economy minister and close ally Johann Wadephul, a foreign policy expert, as foreign minister.
Merz’s CDU/CSU conservatives, who won the February elections, recently finalized a coalition agreement with the center-left Social Democrats (SPD) as they prepare to tackle international challenges and revive Europe's biggest economy. Their focus includes boosting growth amid a looming recession risk triggered by U.S. President Donald Trump's global trade policies and strengthening Germany’s defense posture within NATO.
Merz aims for his government to be more unified and decisive than the previous SPD-led coalition, which collapsed last November due to internal conflict. Even before officially taking office, Merz and the SPD secured a major fiscal stimulus package to boost spending on infrastructure and defense.
Under the coalition deal, Merz’s CDU will control the economy and foreign ministries, the CSU will lead the interior ministry, and the SPD will oversee defense and finance.
Boris Pistorius is likely to stay on as defense minister, while SPD leader Lars Klingbeil is the favorite for the finance ministry role.
Economic Priorities
The coalition plans to cut taxes for middle- and lower-income groups, reduce corporate taxes, lower energy costs, support the electric vehicle sector, and eliminate a controversial supply chain law. It also promises tougher immigration policies and stronger support for Ukraine against Russian aggression.
Katherina Reiche, the CEO of Westenergie and former head of Germany’s VKU local utilities association, is praised for her deep industry knowledge. She replaces Robert Habeck of the Greens, who faced criticism for lacking economic expertise during his tenure.
Johann Wadephul, a Bundestag member since 2009 and deputy leader of the CDU/CSU parliamentary faction on foreign affairs and defense, will succeed Annalena Baerbock as foreign minister. Analysts believe Wadephul’s close ties to Merz will bring a more consistent and stronger German foreign policy, especially regarding the U.S., China, and Russia.
New Digitalization Ministry
Recognizing the urgent need to modernize Germany’s digital infrastructure, Merz’s coalition has created a new Ministry for Digitalization, to be led by Karsten Wildberger, CEO of Ceconomy AG and former executive at E.ON, Telstra, and Vodafone. This move was hailed by digital industry leaders as a major step forward.
Additionally, Alexander Dobrindt from the CSU will take over the interior ministry, signaling a tougher stance on migration, as the coalition seeks to counter the growing popularity of the far-right AfD.
The SPD will announce its ministers after its members vote to approve the coalition deal, with results expected on Wednesday. Merz is set to be sworn in as chancellor on May 6.
Russia intends to withdraw from its long-standing agreement on military-technical cooperation with Germany, the Russian Foreign Ministry announced, citing that relevant internal procedures are currently underway.
Germany’s producer prices dropped 1.2% year-on-year in May, in line with market expectations, largely due to falling energy prices, official data showed Friday.
Germany’s foreign minister called on Iran’s leadership to urgently provide credible assurances it is not pursuing nuclear weapons and to return to negotiations, amid growing fears of military escalation with Israel.
Berlin is preparing a new bill to accelerate arms purchases and prioritize domestic weapons production, aiming to respond swiftly to growing security threats triggered by the Russia-Ukraine war.
Germany’s Defense Ministry rejected claims on Monday that a German military tanker aircraft refueled Israeli jets involved in recent airstrikes on Iran, calling the reports unfounded.
The Trump administration has unveiled sweeping new sanctions targeting Iran’s defence supply chain and Yemen’s Iran-backed Houthi movement, intensifying efforts to block the flow of sensitive military technology and illicit oil revenues fueling regional instability.
China’s exports of rare earth magnets dropped sharply in May, plunging 52.9% from April to just 1,238 metric tons, their lowest monthly level since February 2020. The drop comes amid tightened export controls and growing customs scrutiny.
China has unveiled a mosquito-sized bionic drone designed for covert military operations and battlefield reconnaissance, marking a major advance in micro-robotics and stealth technology as part of the country’s growing focus on next-generation warfare capabilities.
Severe flooding triggered by heavy rainfall in southern China has forced the evacuation of about 70,000 people, local media reported on Wednesday.
Former UFC lightweight champions Khabib Nurmagomedov and Islam Makhachev have landed in Baku ahead of Azerbaijan’s first-ever UFC tournament.
Iranian missiles struck multiple locations across Israel and neighbouring regions early Friday morning, including a Microsoft office complex, according to emergency responders and local media reports.
Peace is no longer a dream. It is a discussion. On the streets of Baku and Yerevan, it is also a question, of trust, of foreign interests, and of who truly wants it.
Israeli strikes have reportedly targeted areas near the residences of Iran’s Supreme Leader Ayatollah Ali Khamenei and President Masoud Pezeshkian, according to the New York Times, citing local witnesses.
A high-speed tram derailment in central Gothenburg, Sweden, has left at least eight people injured late on Thursday (19 June), after the vehicle slammed into a snack bar on Avenyn Avenue.
The 2025 G7 Leaders’ Summit was held June 15–17 in Kananaskis, Alberta, under Canada’s presidency. Prime Minister Mark Carney framed the meeting around priorities of protecting communities, energy and climate security, the digital transition, and future partnerships.
Tajikistan and China have agreed to establish a Joint Working Group on Artificial Intelligence, following high-level talks between President Emomali Rahmon and President Xi Jinping in Astana earlier this week.
Switzerland has announced the lifting of a wide array of economic sanctions on Syria, including measures targeting the country’s central bank. The move follows a series of international steps aimed at supporting Syria’s recovery after the fall of former president Bashar al-Assad in December 2024.
The Trump administration has unveiled sweeping new sanctions targeting Iran’s defence supply chain and Yemen’s Iran-backed Houthi movement, intensifying efforts to block the flow of sensitive military technology and illicit oil revenues fueling regional instability.
Tesla has secured a major agreement to build its first grid-scale battery storage station in China, local media outlet Yicai reported Friday.
Iran has fired a new round of missiles at Israel, with reports of strikes in several locations, as tensions between the two countries continue.
The Trump administration has unveiled sweeping new sanctions targeting Iran’s defence supply chain and Yemen’s Iran-backed Houthi movement, intensifying efforts to block the flow of sensitive military technology and illicit oil revenues fueling regional instability.
China’s exports of rare earth magnets dropped sharply in May, plunging 52.9% from April to just 1,238 metric tons, their lowest monthly level since February 2020. The drop comes amid tightened export controls and growing customs scrutiny.
China has unveiled a mosquito-sized bionic drone designed for covert military operations and battlefield reconnaissance, marking a major advance in micro-robotics and stealth technology as part of the country’s growing focus on next-generation warfare capabilities.
Severe flooding triggered by heavy rainfall in southern China has forced the evacuation of about 70,000 people, local media reported on Wednesday.
Former UFC lightweight champions Khabib Nurmagomedov and Islam Makhachev have landed in Baku ahead of Azerbaijan’s first-ever UFC tournament.
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