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The Bundestag is debating a budget of 555 billion euros for 2027, including over 200 billion euros in new borrowing. Lars Klingbeil defended spending on infrastructure, defense, and social benefits, while the opposition criticized high interest costs and cuts.
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The CDU suffered a significant election defeat in Saxony-Anhalt, with the AfD gaining considerable ground. Chancellor Friedrich Merz (CDU) faces internal and external pressure regarding the "firewall" to the AfD and his reforms. The SPD signals a departure from the planned reform course, particularly concerning pensions.
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Following the CDU's poor result in the Saxony-Anhalt state election, Sepp Müller is applying for the state chairmanship. He rejects cooperation with the "extreme left" and "the extreme right."
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The Greens in Saxony-Anhalt are open to the Bündnis Sahra Wagenknecht's (BSW) proposal to elect an independent Minister-President without a coalition. Top candidate Susan Sziborra-Seidlitz called this a "last straw" to prevent an AfD-led government or a deadlock.
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Israeli Prime Minister Netanyahu is facing pressure following a report by "Haaretz" detailing a warning from UAE President Al-Nahyan about an impending Hamas attack. Netanyahu's office has denied this information.
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The Sahra Wagenknecht Alliance (BSW) might enable a government formation with the AfD in Saxony-Anhalt by considering abstentions in the election of the Minister-President. Sahra Wagenknecht sees common ground with AfD voters on issues like migration and ending arms deliveries to Ukraine.
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25 out of approximately 2,600 electoral districts in Saxony-Anhalt will be recounted following the state election. This is due to missing subtotals in 24 districts and a discrepancy between the written record and the rapid report in one case. The local election official does not expect the final result to change.
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SPD candidate Krach, citing 81 percent dissatisfaction with reform plans, calls for maintaining pension without deductions after 45 contribution years and reversing housing benefit cuts. He views the AfD's election victory in Saxony-Anhalt as a reflection of financial concerns.
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In the first six months of 2026, German electricity production rose by 4.5 percent, with renewables increasing by 6.5 percent. Electricity imports fell by 8.7 percent, while exports grew by 14.9 percent.
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Following the election in Saxony-Anhalt, a far-right party could come to power for the first time since 1945, as the AfD will likely depend on votes from BSW or CDU. This could lead to pressure on minorities and societal division.
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