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German Chancellor Friedrich Merz said he would currently discourage his children from studying or working in the United States, pointing to what he described as a worsening social climate and shrinking opportunities even for highly educated professionals. Speaking at a Catholic convention in Wuerzburg, Merz said Germany now offers stronger prospects for young people.

His remarks come amid growing tensions between the United States and its European allies under President Donald Trump. Disagreements over trade, the wars in Ukraine and Iran, and NATO relations have strained ties between Washington and Berlin. Merz recently criticized the United States over the Iran conflict, while Washington responded with plans for partial troop withdrawals from Germany and increased tariffs on European Union car imports.

Although Merz described himself as a longtime admirer of America, he admitted that his opinion was changing. He said many highly educated Americans are struggling to find jobs and suggested the country’s environment has shifted rapidly. Trump has also criticized Germany under Merz, saying the chancellor should focus on fixing his own country before commenting on the United States.

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Commerzbank announced plans to cut 3,000 jobs and raise its long-term profit targets as it fights to remain independent amid a takeover attempt by Italy’s UniCredit. The German bank said the restructuring would strengthen revenue and profitability by 2028, while criticizing UniCredit’s €37 billion takeover proposal as unclear and risky. Commerzbank also expects around €450 million in restructuring costs tied to the layoffs.

The takeover battle has become a major issue in Germany’s financial and political circles, with UniCredit CEO Andrea Orcel pushing for a major cross-border European banking merger. UniCredit now holds just under a 30% stake in Commerzbank and argues that larger European banks are needed to compete globally. However, Commerzbank insists it can perform better independently and unveiled stronger targets, including €15 billion in revenue and €4.6 billion profit by 2028.

Germany’s government has openly opposed the takeover effort, with Chancellor Friedrich Merz criticizing hostile banking acquisitions and warning they damage trust. Germany still owns a 12% stake in Commerzbank from a past financial crisis bailout, and some politicians are urging Berlin to increase its holding to block UniCredit’s advances. The announcement came as Commerzbank reported a 9.4% rise in first-quarter net profit, beating analyst expectations.

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German Chancellor Friedrich Merz said his relationship with U.S. President Donald Trump remains positive despite a public disagreement over the Iran conflict. Speaking in Berlin, Merz acknowledged differences in opinion but stressed that communication between the two leaders continues.

The dispute highlights broader tensions between the United States and its European NATO allies over Iran, as well as ongoing concerns tied to the Ukraine war. Merz reiterated his skepticism about the Iran conflict from the beginning, emphasizing its economic consequences for Europe, particularly disruptions to energy supplies linked to the closure of the Strait of Hormuz.

Trump recently criticized Merz, accusing him of being lenient on Iran’s nuclear ambitions—an accusation the German leader has denied, maintaining that Iran must not acquire nuclear weapons. Despite the exchange, both sides continue diplomatic engagement, even as the conflict remains unresolved and continues to impact global markets.

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Germany has suspended a controversial requirement that men of military age seek approval for extended stays abroad, Defence Minister Boris Pistorius announced after public concern over new military service rules. The regulation, introduced under the Military Service Modernisation Act that took effect in January, had required males aged 17 and above to obtain permission before travelling abroad for more than three months, though it had not yet been enforced.

Pistorius clarified that during peacetime, citizens aged between 17 and 45 are free to travel without notifying authorities or requesting approval. The government has temporarily halted the permission process while military service remains voluntary, stressing that the measure was originally intended as a precaution tied to national defence planning amid heightened security concerns following Russia’s invasion of Ukraine.

The updated law seeks to strengthen Germany’s armed forces and allows conscription to be reinstated if voluntary recruitment falls short. Chancellor Friedrich Merz has pledged to build Europe’s strongest conventional army, with all 18-year-olds now receiving questionnaires about potential military service — mandatory for men and optional for women. From July 2027, 18-year-old men will also undergo medical examinations to assess fitness for possible service.

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Germany is working to clarify provisions in its updated military service law that require men aged 17 to 45 to seek permission before leaving the country for more than three months. The rule, which came into effect in January, drew attention only recently and could potentially impact millions. The defence ministry said it is now drafting clearer exemption guidelines to reduce confusion and avoid unnecessary bureaucracy.

Officials emphasised that military service remains voluntary, despite the stricter registration requirements. The law is part of broader efforts to strengthen the country’s armed forces, including the Bundeswehr, amid rising security concerns in Europe. Authorities say the measure is intended to ensure better tracking of eligible individuals in case of emergencies.

The move has sparked criticism from opposition leaders, who argue the law creates uncertainty for citizens. The government, led by Friedrich Merz, aims to expand military personnel to 260,000 by 2035 as part of efforts to boost defence readiness and meet NATO commitments in an increasingly tense geopolitical environment.

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German Chancellor Friedrich Merz has expressed doubts about whether the military actions by United States and Israel against Iran will achieve lasting success. Speaking at a conference in Berlin, Merz said he was unconvinced that there was a clear endgame to the conflict, which began with joint strikes on February 28 and has since escalated across the region.

Iran has responded with attacks on Israeli territory, U.S. bases, and Gulf states, while also disrupting vital oil shipments through the Strait of Hormuz. European countries, including Germany, have largely avoided direct involvement, a stance that has reportedly frustrated U.S. President Donald Trump. Merz emphasized ongoing diplomatic efforts through the G7 and regional talks but admitted limited influence over Israeli decisions.

Merz also clarified that the conflict is not a mission for NATO, noting he conveyed this position in a recent call with Trump. While Germany may consider future roles such as securing maritime routes or clearing mines in the Strait of Hormuz, he stressed that any such involvement would depend on international approval and would only be considered after hostilities end.

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German Chancellor Friedrich Merz faces his first electoral challenge since taking office as voters head to the polls in the state of Baden-Württemberg on Sunday. The election is seen as an early test of support for Merz’s conservative Christian Democratic Union (CDU), which hopes to regain dominance in a region long tied to Germany’s car industry.

Opinion polls show a tight race between the CDU candidate Manuel Hagel and the Greens’ Cem Özdemir, both polling around 28%. The winner will succeed outgoing Green premier Winfried Kretschmann, with the outcome likely shaping the balance of power in the state government coalition.

Meanwhile, the far-right Alternative for Germany (AfD) continues to poll strongly at about 20%, reflecting growing political shifts across Germany. The Baden-Württemberg vote is the first of several regional elections this year and comes amid economic concerns linked to rising fuel prices and global tensions.

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Germany’s armed forces face a critical recruitment shortfall that could force Berlin to reinstate compulsory military service if voluntary efforts fail, the country’s Parliamentary Commissioner for the Armed Forces has warned. In his annual report, Commissioner Henning Otte said personnel shortages remain the Bundeswehr’s most pressing bottleneck as Germany seeks to strengthen its military capabilities amid heightened security concerns over Russia and pressure from the United States.

Chancellor Friedrich Merz’s government has pledged to rebuild the Bundeswehr into Europe’s strongest conventional army after years of underinvestment. Berlin aims to expand active troop numbers to 260,000 from nearly 185,000 and double reservist strength to 200,000 by the mid-2030s. As part of this effort, authorities have introduced a voluntary model requiring all 18-year-olds to complete a questionnaire indicating their interest in military service.

However, the report cautions that modest gains in troop numbers — about 3,000 additional active soldiers by the end of 2025 — may not be enough to meet ambitious targets. Demographic decline, competition for skilled workers and high dropout rates are limiting growth. The commissioner warned that political goals risk outpacing military realities, adding that a return to compulsory service may become necessary if voluntary recruitment does not deliver sufficient personnel.

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The European Union’s 27 member states have called for “maximum restraint” and full adherence to international law amid escalating hostilities involving Iran. In a statement issued after an emergency meeting of foreign ministers, EU foreign policy chief Kaja Kallas stressed the need to protect civilians and uphold the principles of the UN Charter and international humanitarian law. The appeal followed U.S. and Israeli strikes on Iran and Tehran’s retaliatory attacks on Israel, U.S. forces and Gulf countries, which the EU described as inexcusable violations of sovereignty.

The bloc also voiced concern about the broader regional and economic fallout of the conflict, warning against escalation that could destabilize the Middle East and beyond. It highlighted the importance of keeping critical waterways such as the Strait of Hormuz open, citing risks to global energy supplies and supply chains. Disruptions to oil flows could have significant economic consequences for Europe, which is already grappling with geopolitical uncertainty.

The joint statement reflected differing views within the EU over the U.S.-Israeli military action. While German Chancellor Friedrich Merz signaled caution against criticizing allies, Spanish Prime Minister Pedro Sánchez rejected the strikes as contributing to global instability. Diplomats acknowledged that Europe has limited leverage over the unfolding crisis, despite the potential for serious regional and economic repercussions.

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Germany’s unemployment total remained above three million in February, underscoring persistent strain in Europe’s largest economy after two consecutive years of contraction. Labour office data showed 3.07 million people out of work, slightly down from the previous month but 81,000 higher than a year earlier. On a seasonally adjusted basis, unemployment rose by 1,000 to 2.977 million, while the jobless rate held steady at 6.3%, matching forecasts.

Labour office head Andrea Nahles said the market was still struggling to regain momentum following the winter period. The figures pose a challenge for Chancellor Friedrich Merz, who has pledged to revive growth through increased infrastructure and defence spending. Analysts said that with the economy stagnating for years and industry facing structural pressures, a gradual weakening in the labour market was largely unavoidable, with no clear turning point yet in sight.

Other data offered mixed signals. Inflation dipped below 2% in several German states in February, pointing to easing price pressures nationally, in line with a broader slowdown across the euro zone. Real wages continued to recover, rising 1.9% in 2025 and 2.9% in 2024, though they remain below pre-2019 levels after inflation shocks linked to the pandemic and Russia’s 2022 invasion of Ukraine eroded purchasing power.

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