Photo : Christian Mang/Reuters
24 June 2025, Tuesday | NIAS Europe Daily Brief #1165
By Vaihali Chittrothu
GERMANY
Cabinet approves 2025 draft budget; Defence spending to increase
On 23 June, Germany’s Chancellor Friedrich Merz issued a statement to the Bundestag ahead of the NATO summit. On the same day, the German Cabinet approved the draft budget for 2025, which includes record investments aimed at boosting economic growth and significantly increasing defence spending. Defense expenditure is projected to rise from EUR 95 billion in 2025 to EUR 162 billion by 2029—reaching 3.5 per cent of GDP—amid heightened security concerns and pressure from allies like the U.S. This sharp increase is made possible by a landmark debt brake reform passed in March, which allows expanded borrowing, with net new debt expected to climb from EUR 82 billion in 2025 to over EUR 126 billion by 2029. Meanwhile, a study from EHI shows shoplifting is on the rise in Germany, with senior citizens and families increasingly involved, driven by financial hardship and facilitated by the spread of self-service checkouts. Additionally, a report from Boston Consulting Group reveals that Germany’s wealth gap is widening, with 3,900 ultra-wealthy individuals now controlling 27 per cent of the country’s financial assets, reflecting growing economic inequality despite the government's efforts to stimulate broader economic recovery. (Rana Taha, “Germany updates: Cabinet to sign off on 2025 draft budget,” Deutsche Welle, 23 June 2025)
MIA reports an increase in verbal abuse and assaults against the Sinti and Roma ethnic groups
On 23 June, a report by the Antiziganism Reporting and Information Centre (MIA) revealed the nature and scale of antiziganism in the country, with 1,678 antiziganism cases in 2024 ranging from verbal abuse to assaults. The assaults were against the Roma and Sinti groups. The Central Council of German Sinti and Roma Head, Romani Rose, stated that a change in consciousness had just begun despite 50 years of political work in this country. She even recalled the systematic extermination of the Roma ethnic group by the National Socialists. Member of the Bundestag for the Christian Democratic Union (CDU), Mehmet Daimagüler, stated that discrimination paves the way for life-threatening cases of physical assaults on people. The report also includes examples of violence and discrimination faced by the ethnic groups. A study reveals that issues of discrimination have been common in kindergartens and schools. The report states that the media had been portraying false depictions in commercials and broadcasts on these ethnic groups, which contributed to the discrimination. To date, an estimated 80,000 to 140,000 Roma and Sinti communities live in the country. In Europe, their population ranges between 10 and 12 million. (Marcel Fürstenau, “Germany: Racism against Sinti and Roma increasing,” Deutsche Welle, 23 June 2025)
SWITZERLAND
Economic survey reveals low economic development for 2026
On 23 June, Swissinfo reported that economists forecast economic development for the year 2025. The survey was conducted from 02 to 18 June by 15 economists, and concluded that the economic development will weaken by 2026. They lowered their prediction for 2025. The economists surveyed as part of the Swiss Economic Institute (KOF) on 23 June expect the real GDP to grow by 1.3 per cent on average in 2025 and 2026, adjusted for sporting events. Due to inflation, lower rates were expected from 0.5 per cent to 0.2 per cent in 2025 and 0.8 per cent to 0.6 per cent in 2026. (“Swiss economists lower growth forecast for 2026,” Swissinfo, 23 June 2025)
REGIONAL
Hungary and Slovakia block the EU's latest sanctions on Russia
On 23 June, Hungary and Slovakia announced that they are going to block the EU's proposal on the 18th sanction package against Russia during the Foreign Affairs Council in Belgium. This came in response to the EU's Repower EU plan that aimed to stop all energy imports from Russia. Hungarian Minister of Foreign Affairs, Péter Szijjártó, said that the EU prevents Hungary and Slovakia from purchasing cheap natural gas and crude oil from Russia. By cutting the imports from Russia, Hungary’s and Slovakia’s economies would be affected abysmally. If the sanction is approved, Hungary’s energy security would be destroyed and triple the utility costs paid by Hungarian families. (Sandor Zsiros, “Hungary and Slovakia set to block EU's fresh Russia sanction package,” 23 June 2025)
INTERNATIONAL
EU to discuss the suspension of the EU-Israel agreement following Israel’s human rights violations
On 23 June, Euronews reported that the EU's 27 foreign affairs ministers were yet to respond to the review of the EU-Israel Association Agreement. This agreement reports on the violation of humanitarian laws by Israel, which affects Gaza. EU Vice-President, Kaja Kallas, said following the release of the report, that if the situation didn't improve, then the EU would discuss further measures and also suspend its Association Agreement with Tel Aviv in July. The review was eight pages long, and it highlighted all that proves Israel’s violation of human rights obligations as mentioned in Article 2 of the agreement. The violations included blockade of humanitarian assistance, military strikes against hospitals and forced displacement of the Palestinian population. (Maïa de La Baume, “EU to revisit suspension of partnership with Israel over violations in Gaza,” 23 June 2025)
Greece to deploy naval warships to curb illegal immigration
On 23 June, Euronews reported that Greece aimed to deploy navy warships to Libyan territorial waters to restrict illegal immigration into the country. The action was followed by 731 migrants entering the country last week. Greece’s Prime Minister, Kyriakos Mitsotakis, said that they took such initiatives for the prevention and deterrence caused by last week’s incidents. Mitsotakis said that this action was in cooperation with Libyan authorities and other European powers to tell migrant smugglers that they weren't in charge of who entered the country. The current records state that the country has received 16,290 arrivals, of which 14,600 were by sea. (Nicoleta Drougka, “Greece plans to deploy navy ships off Libya to 'send a message' to migrant smugglers,” Euronews, 23 June 2025)