Overview

• Germany’s 2025 tax forecast reveals a €600 million revenue shortfall this year, with over €30 billion projected losses by 2029, pressuring budget planning.
• The coalition plans a €500 billion special investment fund, requiring legislative action to bypass the constitutional debt brake.
• Foreign Minister Wadephul's support for Trump’s 5% NATO defense spending target has drawn criticism from SPD, Greens, and the Left, while Chancellor Merz emphasizes capability-based planning over GDP percentages.
• Interior Minister Dobrindt has implemented stricter border controls, increased asylum seeker returns, and proposed reversing citizenship reforms and limiting family reunifications.
• Dobrindt also seeks expanded police powers, including IP address retention and advanced surveillance tools, sparking legal and political debates.