Germany updates: Cabinet approves 2026 draft budget

07/30/2025July 30, 2025

German government approves 2026 draft budget

The German Cabinet has approved Finance Minister Lars Klingbeil's 2026 draft budget, which outlines spending of €520.5 billion ($600.3 billion) and new borrowing totaling about €174 billion.

Europe's largest economy is shifting away from decades of fiscal conservatism to revive economic growth, modernize its aging infrastructure, and boost military spending.

German lawmakers are expected to begin discussions on the budget by the end of September, with final approval anticipated by year's end.

07/30/2025July 30, 2025

No New Year's Eve party at the Brandenburg Gate

The annual show at the Brandenburg Gate features numerous musicians performing is broadcast live on TV, and crowned with a big firework display at midnightImage: Ralf Müller/Photopress Müller/imago images

Berlin's large New Year's Eve party at the Brandenburg Gate will not take place this year, organizer Benedikt Alder told the German news agency, DPA.

The cancellation follows a decision by the Berlin city government to withdraw financial support for the celebration. 

Berlin's Governing Mayor Kai Wegner told DPA that the city will no longer fund the show, which has drawn thousands of revelers and millions of TV viewers over the decades.

"In my opinion, it's not the job of taxpayers to finance such events," Wegner told dpa. "Especially not in times of tight budgets."

With no financial backing secured, organizers were left with no choice but to call off the festivities, Alder said. 

07/30/2025July 30, 2025

Germany reportedly reviews use of controversial Palantir software

Germany's Interior Minister Alexander Dobrindt is reviewing the nationwide use of security software developed by the US company Palantir.

A ministry spokeswoman told Stern magazine that the evaluation is ongoing and no decision has yet been made.

The software was specifically developed for security agencies and is used by intelligence services, the military, and police.

"Palantir is not a neutral IT provider but closely linked to U.S. intelligence agencies with clear geopolitical aims,"Johannes Schätzl, a Social Democrat lawmaker, said.

He added that German security forces should not use the company's software.

Green Party deputy leader Konstantin von Notz said that at a time when the US government is becoming less reliable, cooperation with Palantir should be ruled out.

Interior Minister Alexander Dobrindt is a member of Germany's Christian Social Union party.Image: Ints Kalnins/REUTERS

Dobrindt generally supports the use of such software and received backing from Jens Spahn, a fellow member of the ruling conservative CDU/CSU. Spahn said Palantir "would greatly help" police, adding that criminals use all digital tools available and "the state must keep up within the law."

Last week, the Society for Civil Rights and the Chaos Computer Club filed a constitutional complaint against Palantir's use in Bavaria, arguing that it violates privacy rights by linking unrelated individuals to criminal data.

The software is used on the state level in Bavaria, Hesse and North Rhine-Westphalia.

07/30/2025July 30, 2025

German economy contracts in second quarter

Germany's economy shrank in the second quarter, according to provisional data released on Wednesday.

The country's gross domestic product (GDP) fell by 0.1% compared to the first quarter, the federal statistics office Destatis said. This follows a modest revision of Q1 growth to 0.3%.

Destatis said the quarterly decline was due to lower investment in machinery, equipment, and construction. However, consumer and government spending provided some support.

Year-on-year, GDP remained flat when adjusted for prices, but showed a slight increase of +0.4% when calendar effects were also considered.

07/30/2025July 30, 2025

Climbers to attempt rescue of German Olympic gold medallist in Pakistan mountains

Dahlmeier is a certified mountain and ski guide and an active member of the mountain rescueImage: Sven Simon/IMAGO

A rescue mission is underway in northern Pakistan for German Olympic biathlon champion Laura Dahlmeier, who was seriously injured in a rockfall on Laila Peak in the Karakoram mountain range.

The 30-year-old was climbing at around 5,700 meters (18,700 feet) when falling rocks swept her away. Her climbing partner raised the alarm after being rescued.

Officials say helicopter access is impossible.

"The conditions at the altitude where she was injured are extremely challenging, and a team of foreign climbers will launch a ground rescue mission today," Areeb Ahmed Mukhtar, a senior local official in Ghanche district, said. 

Dahlmeier, a seasoned mountaineer, made history at the 2018 Winter Olympics, winning both the sprint and pursuit events.

07/30/2025July 30, 2025

Welt TV launches weekly AI-produced news show

German news channel Welt TV is launching a weekly program entirely produced and hosted by artificial intelligence. 

Titled KI-Welt, the show covers topics like AI, robotics, and future tech, with all editorial processes, from research to presentation, handled by AI with human supervision. 

Jan Philipp Burgard, Welt TV's editor-in-chief, said the experimental show is to show what is already possible with AI. 

"We won't be able to stop the AI revolution, so we should embrace it and help shape it," he said. 

A computer-generated avatar anchors the show. The first episode will air on Thursday.

The AI-generated host of the new show, KI-Welt, on Welt TV Image: Welt TV/dpa

07/30/2025July 30, 2025

Mercedes-Benz profit drops 55.8%

Profits at German carmaker Mercedes-Benz have fallen by 55.8% in the first half of the year, the company says.

The Stuttgart-based carmaker said post-tax earnings plummeted from €6.1 billion to around €2.7 billion in the first half of the year.

The business cited tariffs, lower sales volumes, and costs linked to efficiency measures as reasons for the decline. 

Looking ahead, Mercedes now expects full-year group revenue to fall significantly below last year's level. 

07/30/2025July 30, 2025

Germany's 2026 budget expected to include heavy spending

The German government is expected to approve the 2026 draft budget on Wednesday, which outlines spending of €520.5 billion ($600.3 billion) and new borrowing totaling about €174 billion.

Finance Minister Lars Klingbeil's budget includes €126.7 billion in investments earmarked for modernizing the country.

The government, in office since May, has pledged to increase spending to upgrade infrastructure and strengthen the military.

Officials also hope the budget will help improve the economic climate, which is projected to recover noticeably in 2025 and 2026 after two years of stagnation.

Klingbeil, however, warned this week that significant austerity measures will likely be needed starting in 2027, when a funding gap of approximately €172 billion is expected.

07/30/2025July 30, 2025

Welcome to our coverage

Guten Morgen from the Bonn newsroom, still staffed by humans.

That's no longer entirely the case over at Welt TV, where a new weekly program will soon be produced and presented entirely by artificial intelligence.

Meanwhile, the German government is tackling the 2026 draft budget the old-fashioned way, without AI assistance, at least as far as we know.

In a notable shift from its long-standing tradition of fiscal restraint, Germany is now spending big: aiming to jumpstart the economy, modernize its aging infrastructure, and boost military investment.

We'll be keeping an eye on those stories, and more, right here in this blog.