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TODAY IN GERMANY

Today in Germany: A roundup of the latest news on Thursday

Pressure mounts on coalition government to reach budget decision, Health Minister pushes for care reform, Germany's first African-born Black MP to stand down and more news from around Germany on Thursday.

German Chancellor Olaf Scholz next to German Minister of Economics and Climate Protection Robert Habeck prior to the weekly cabinet meeting on July 3, 2024 at the Chancellery in Berlin.
German Chancellor Olaf Scholz next to German Minister of Economics and Climate Protection Robert Habeck prior to the weekly cabinet meeting on July 3, 2024 at the Chancellery in Berlin. Photo by RALF HIRSCHBERGER / AFP

Pressure mounts on German government to make budget decision

Germany’s traffic light coalition is still scrambling to agree on its 2025 budget, which was originally due to be signed into law by July 4th. 

As that deadline has now been missed, the government, made up of the Social Democrats, Greens and Free Democrats, is aiming for a new deadline of July 17th. 

To reach this date, however, they need to decide on an outline in the next few days, as drafting the budget law usually takes around 10 more days. Negotiations are expected to continue into the night on Thursday if necessary.

This week, the majority SPD party has increased the pressure on its coalition partners to make a decision. The parliamentary group wants clarity on the government’s budget plans by Friday and scheduled a special meeting for 7am.

The FDP, however, has said it does not want to be rushed into a result. “

When it comes to the federal budget, thoroughness and a good result come first, because in the end, the overall package has to be right,” FDP Secretary General Bijan Djir-Sarai told DPA.

READ ALSO: What the shock defection of a Greens MP to the CDU tells us about German politics

Germany’s first African-born MP Karamba Diaby set to step down 

Karamba Diaby, of the Social Democrats, said he will not run for the Bundestag again after the current legislative period comes to an end. 

The Halle-based politician, who made history when he entered parliament in 2013 as the first African-born Black MP in Germany, said he made the decision so he can spend more time with family. He said the move came “after months of consideration and deliberation”.

He thanked his party and highlighted past achievements such as the introduction of a statutory minimum wage, the Skilled Immigration Act and the modernisation of citizenship law. Most recently, he had campaigned for political initiatives to integrate African countries and for allotment gardens.

Diaby faced a number of racist attacks and hate speech against him over the years – both online and offline. At the beginning of June this year, police in Halle opened an investigation into a death threat against the politician. At the time, Diaby wrote that “a new red line” had been crossed, however said he would not be intimidated.

READ ALSO:

Karamba Diaby, of the SPD, speaking in the Bundestag.

Karamba Diaby, of the SPD, speaking in the Bundestag. Photo: picture alliance/dpa | Christophe Gateau

Diaby was born in Senegal in 1961 and came to Halle in former East Germany on a scholarship in the 1980s. The doctor of geoecology first entered the Bundestag for the SPD in 2013. He won a direct mandate for the first time in 2021, and after the next general election, scheduled for 2025, he will stand down.

The politician did not recommend a successor for his constituency, which is hotly contested between the CDU, AfD and SPD.

Health Minister pushing for care reform

Health Minister Karl Lauterbach (SPD) announced this week that he is planning a new old age care reform before the upcoming federal election in 2025 due to escalating costs. 

He announced that a new concept will be published after the summer break and plans to outline a comprehensive package that focuses on increasing nursing staff capacities, enhancing preventive measures to reduce the need for care, and addressing a major financial shortfall. 

An elderly person's hands.

Image by Alexa from Pixabay

The nursing care insurance sector anticipates deficits for 2024 and 2025, but Lauterbach reassured them that the challenge is manageable without an imminent “cost explosion”. Patient advocates are calling for prompt action.

READ ALSO: How to use Germany’s new hospital comparison portal 

Germany’s Scholz voices worry over French vote

Germany’s Chancellor Olaf Scholz has said he is concerned about the prospect of a far-right victory in the second round of France’s parliamentary elections this weekend.

The anti-immigration National Rally (RN) party of Marine Le Pen dominated the first round of the snap voted called by President Emmanuel Macron, and a strong showing Sunday could allow it to take control of France’s government for the first time.

“It’s another election whose outcome may cause concern,” Scholz told a gathering of his centre-left Social Democratic Party (SPD) in Berlin.

“We have seen this in many other European countries like in the Netherlands, where the government lost its nerve and called new elections,” he said.

“That did not end well,” he added, referring to far-right leader Geert Wilders’s sweeping victory in the 2023 Dutch general elections that stunned Europe.

Confident Kroos says Germany-Spain clash ‘won’t be my last game’

Retiring Germany veteran Toni Kroos said he was confident Friday’s showdown Euro 2024 quarter-final against Spain would not be the last game of his career.

Kroos announced in May he would hang up his boots after the Euros on home soil, meaning this week’s match in Stuttgart could be his final game.

READ ALSO: How (and where) to watch Euro 2024 games in Germany this week

Real Madrid teammate Joselu said this week he wanted to “send Kroos into retirement” but the 34-year-old midfielder had his sights set on the July 14th Euros final in Berlin.

“We will still be in the tournament for a while,” Kroos told reporters on Wednesday at Germany’s base camp in the Bavarian village of Herzogenaurach.

“I don’t think tomorrow will be my last game. I think we’ll see each other again – and I look forward to it,” he added.

Schumacher blackmail suspects had ‘family photos’

Two men accused of trying to blackmail relatives of Formula One legend Michael Schumacher had access to private family photos, German prosecutors said Wednesday.

Data records combed by investigators included “photo files relating to the Schumacher family’s private life”, the prosecutors in the western city of Wuppertal said in a statement.

German authorities announced in June they had arrested a father and son on suspicion of trying to blackmail the Schumacher family.

The suspects contacted family representatives claiming to have access to files which the Schumachers “would not want to have published”, prosecutors said.

“To stop the files being published online, the perpetrators demanded a payment in the millions,” they said.

Michael Schumacher, a seven-time Formula One world champion, has not been seen in public since he suffered a serious brain injury in a 2013 skiing accident in the French Alps.

The two suspects, who were on probation in another case, were arrested by police on June 19 in a supermarket car park in Gross-Gerau, south of Frankfurt.

With reporting by Sarah Magill and Rachel Loxton

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TODAY IN GERMANY

Today in Germany: A roundup of the latest news of Friday

German coalition government reach an early-morning agreement 'in principle' on 2025 budget, Germany set for major Euro 2024 clash against Spain, new report suggests disparities across regions are easing and more news on Friday.

Today in Germany: A roundup of the latest news of Friday

Agreement in principle on 2025 German budget, says source close to coalition

Chancellor Olaf Scholz and his allies have struck an early-morning agreement in principle on Germany’s 2025 budget, a source close to the ruling coalition said early Friday, ending a protracted clash over spending.

“An agreement was reached” at the end of the night between Scholz, Vice-Chancellor and Economy Minister Robert Habeck of the Greens, and Finance Minister Christian Lindner of the pro-business FDP, who had been in talks since Thursday afternoon, the source said.

Details were not immediately available on the compromise, though it does include a plan to support growth.

Scholz will now have to present the plan to coalition parliamentarians in the morning.

The drawn-out conflict over the budget had threatened to topple the three-way coalition, and the agreement appeared to put an end to weeks of negotiations between Scholz’s Social Democrats (SPD), the Greens and the FDP.

PODCAST: Underrated German tourist spots and can the €49 ticket survive?

Germany face Spain and France take on Portugal in thrilling Euro 2024 quarters

Hosts Germany take on Spain in the first of two blockbuster quarter-final ties at Euro 2024 on Friday, with Kylian Mbappe’s France up against Cristiano Ronaldo’s Portugal in the late match.

Germany and Spain clash in Stuttgart at 6 pm with the host nation putting their hopes on the line against probably the best-performing side at the tournament thus far.

Spain, with the thrilling duo of Lamine Yamal and Nico Williams on the wings, have reached the quarter-finals with four wins in as many games, nine goals scored and just one conceded.

Germany, meanwhile, have also impressed on their run to the last eight, with Jamal Musiala outstanding in attack and Toni Kroos pulling the strings in midfield as he prepares to retire after the competition.

The match, a repeat of the Euro 2008 final won 1-0 by Spain in Vienna, therefore promises to be a thriller.

Meanwhile, at 9 pm on Friday, Portugal play France in Hamburg. 

READ ALSO: How (and where) to watch Euro 2024 quarter finals in Germany

New report shows disparities across German regions are shrinking

Economic and social differences across German regions are shrinking, new research shows. 

The government commissioned Equivalence Report 2024, which looks at the regional disparities across Germany, was adopted by the cabinet this week.

According to the report, differences between regions when it comes to economic and social factors have decreased in recent years, but those regions where the population is decreasing still face major challenges.  

In particular ‘equivalence indicators’ such as: municipal tax revenue, the unemployment rate, the number of crimes, the birth rate and life expectancy, the accessibility of the nearest supermarket and the share of forested areas within districts or cities were found to be levelling off across Germany.

But disparities intensified in other factors, such as: the number of skilled workers, the density of residential buildings, the ratio of children to day-care places, the proportion of single-person households and the old-age dependency ratio. 

Disparity in Germany, particularly between former east and former west states, has long been a point of contention.

READ ALSO: How does Germany’s ‘phantom border’ still divide the country?

Habeck and his map

Nancy Faeser, Federal Minister of the Interior and Home Affairs, and Robert Habeck, Federal Minister for Economic Affairs and Climate Protection, present the Federal Government’s Equality Report 2024 at the Federal Press Conference Center. Photo: picture alliance/dpa | Kay Nietfeld

Germany’s Economy Minister, Robert Habeck (Greens) suggested that the report showed significant improvements.

“I really think this is a decisive summary on the question of how Germany is doing”, the Economy Minister said, adding that it could be used to help recalibrate government funding policies.

Volkswagen rejects ‘detrimental’ EU tariffs on electric cars from China

German auto giant Volkswagen on Thursday said EU moves to impose provisional extra duties of up to 38 percent on Chinese electric car imports over subsidy concerns were “detrimental” to the European market.

“Countervailing duties are generally not suitable for strengthening the competitiveness of the European automotive industry in the long term – we reject them,” Volkswagen said in a statement.

Brussels announced the planned tariff hike last month at the conclusion of an investigation into Chinese state subsidies for electric vehicle makers potentially undercutting European manufacturers.

But auto groups in Germany responded negatively to the EU action against China, where many of them have significant business interests.

“The timing of the EU Commission’s decision is detrimental” to the European electric car market, where demand was weak, Volkswagen said.

READ ALSO: Germany’s Volkswagen considers job cuts as electric car shift stalls

Europe’s largest carmaker said the “negative effects of this decision outweigh any potential benefits for the European and especially the German automotive industry”.

Airbus wins satellite deal with German military

The German army has awarded Airbus a contract worth €2.1 billion for next generation SatcomBw 3 military communications satellites, the European aerospace firm said Thursday.

The contract, for deployment by the end of the decade, includes the prime contractor of two satellites “as well as the ground segment (receiving stations), launch and operation for 15 years,” Airbus said in a statement.

“At a time when Western democracies are challenged and where the European institutional space ecosystem is struggling, we are excited and grateful to develop and build this leading-edge system,” said Michael Schoellhorn, CEO of Airbus Defence and Space.

With reporting by Paul Krantz

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