EU Affairs
German recovery still on ‘shaky ground’, economic institutes say
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The German economy should grow again for the first time in three years this year, but its long-term prospects remain challenging, five leading economic institutes said in a new forecast.
Europe’s largest economy is expected to grow by 0.2 percent this year, before accelerating to 1.3 percent in 2026 and 1.4 percent in 2027, primarily driven by the federal government’s expansionary fiscal policy. The forecasts are largely unchanged from the institutes’ spring forecast round.
“The German economy is still on shaky ground,” said Geraldine Dany-Knedlik, head of Forecasting and Economic Policy at the German Institute for Economic Research (DIW Berlin). While growth will strengthen over the next two years, she warned that “this momentum will not last,” given persistent structural weaknesses.
Latest survey data suggests that expectations of a near-term pick-up in growth may indeed be optimistic, as both the Ifo Business Climate index and S&P Global’s purchasing managers index showed companies turning more pessimistic about the outlook.
Looking ahead, the institutes warn that the economy is exposed to significant risks. “The trade dispute between the United States and the EU carries considerable potential for escalation, particularly if the EU fails to deliver on its commitments,” they wrote. “In addition, the overall economic impact of the expansionary fiscal policy is difficult to assess and depends heavily on its specific design.”
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Is Labour’s king of the north about to challenge the prime minister in Westminster?
After an explosive interview, the Mayor of Greater Manchester, Andy Burnham, says MPs are urging him to challenge Sir Keir Starmer.
Sam and Anne consider:
— What vision Mr Burnham has for the country?
— Can the PM match him and how could he respond?
— How much will it impact political and policy narrative ahead of Labour’s party conference in Liverpool next week?
This post was originally published on this site.
“If we get the opportunity, we will take down the drones,” he added.
In another statement, Danish police in the country’s south said “several drones with lights were observed” at Esbjerg, Sønderborg and Skrydstrup, but it was not “possible to take down the drones or find the drone operators,” and those three airports were not closed. Skrydstrup is an air base and hosts Denmark’s fleets of F-16 and F-35 jets.
Billund Airport, which is one of Denmark’s busiest cargo centers, was closed for about an hour after a drone sighting and quickly reopened, authorities said.
Both Copenhagen and Oslo airports were shut down late Monday after drones were spotted in their airspace, forcing flights to be diverted or canceled and stranding thousands of passengers.
Danish Prime Minister Mette Frederiksen said Tuesday she could not “rule out in any way that it is Russia” behind those drone incidents, calling it “the most serious attack on Danish critical infrastructure to date.”
In recent weeks, Estonia and Poland convened NATO members for urgent talks after Russia was accused of violating their airspace in separate incidents. Moscow has denied responsibility for the Estonian incursion and said the Polish incident was an accident.
At the United Nations this week, U.S. President Donald Trump suggested NATO countries should shoot down Russian aircraft breaching their airspace.
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Richterwahl: Nach der Krise ist (hoffentlich nicht) vor der Krise – POLITICO
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