Overview

• Germany has officially declined Ursula von der Leyen’s €2 trillion budget proposal for 2028–2034, calling it unviable at a time of national fiscal consolidation.
• At his first summer press conference, Chancellor Friedrich Merz insisted there was no coalition crisis, asserting that CDU, CSU and SPD maintain a normal working relationship based on fairness.
• Merz described the campaign against SPD nominee Frauke Brosius-Gersdorf for the Federal Constitutional Court as wholly unacceptable, leaving open the option of a complete candidate reshuffle for a repeat vote.
• He said the coalition has delivered a volume of legislative progress rarely seen in its first ten weeks, highlighting measures such as the investment booster and reinforced border controls.
• He asserted that Germany’s economy is on a better course; “We have initiated the turnaround” was his verdict, accompanied by a clear rise in investor interest.