Overview

• Merz urged both Tehran and Jerusalem to stick to President Trump’s ceasefire declaration even as Israeli forces reported fresh Iranian rocket fire.
• Germany committed to lift its defense budget to at least 3.5% of GDP at the upcoming NATO summit in The Hague to strengthen alliance deterrence.
• The governing coalition is preparing domestic legislation this year to reform the neutrality law and tie the minimum wage to federal rates.
• Merkel set an early-July deadline for resolving Germany’s trade dispute with the United States and warned that failing talks will trigger protective measures.
• German industry leaders have cut growth forecasts and warn that sustained Middle East tensions and U.S. tariffs could push the economy into a third year of contraction.