Germany updates: Berlin boosts security for Jewish sites

The German government has increased protection for Jewish and Israeli institutions across the country.

ChancellorFriedrich Merz said Israel's Prime Minister had briefed him by phone, after which he convened Germany's security cabinet.

Berlin reaffirmed Israel's right to self-defense but urged both sides to avoid escalation, while Israel's embassy in Berlin remains closed "until further notice."

Meanwhile, a leading economic institute says Germany's economy is showing tentative signs of a recovery.

Below is a round-up of the major developments in Germany on Friday, June 13:

06/13/2025June 13, 2025

Germany sees early signs of improved growth

Germany's economy is back on a modest growth track, according to the German Institute for Economic Research (DIW), which has raised its forecasts for 2024 and 2025.

The country's inflation-adjusted GDP is expected to grow by 0.3% this year and 1.7% next year — up from the previous outlook for the two years of 0.1% and 1.1%.

"The surprisingly strong start to the year should spare us from another year of stagnation," said DIW's chief economist Geraldine Dany-Knedlik. She pointed to rising private consumption and a surge in exports in anticipation of upcoming US tariffs as key drivers in the first quarter.

However, Dany-Knedlik warned this rebound would not resolve Germany's structural weaknesses, such as declining competitiveness and a shortage of skilled labor.

One "bright spot," she added, is a new infrastructure investment package expected to deliver a noticeable boost in 2025.

DIW President Marcel Fratzscher cautioned that US trade policy remains a risk, with planned tax cuts in the US potentially increasing debt and triggering market turbulence.

He also cited domestic political gridlock as a concern, urging Germany’s coalition government to finalize its 2025 and 2026 budgets and present a unified long-term vision.

06/13/2025June 13, 2025

Germany’s inflation holds steady in May

Germany’s annual inflation rate remained unchanged at 2.1% in May 2025, according to the Federal Statistical Office (Destatis).

The rate was the same as in April, following slightly higher figures earlier this year — 2.2% in March and 2.3% in January and February, respectively.

"The inflation rate has stabilized, mainly due to the continued decrease in energy prices", said Destatis President Ruth Brand.

"On the other hand, the rise in food and service prices drove inflation up in May also," she added.

On a monthly basis, consumer prices edged up 0.1% in May compared with April.