European markets soar as Germany moves to lift ‘debt brake’ and raise defence spending

Berlin’s ‘big bazooka’ proposal sends industrial stocks surging but fiscal sea change also hikes borrowing costs

European financial markets have rallied sharply and German borrowing costs have soared after the country’s prospective leaders announced a historic deal to loosen its “debt brake” rule to boost spending on defence.

The yield – in effect the interest rate – on 30-year German government bonds rose by about 25 basis points to 3.08% in its biggest daily increase since October 1998.

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UK, France and Germany say Gaza aid freeze could breach international law

Ministers issue joint statement after Israel cuts off supplies in effort to push Hamas to accept change in ceasefire deal

Britain has joined Germany and France to warn that Israel could be in breach of international law by halting the entry of aid into Gaza, which is facing a “catastrophic” humanitarian crisis.

The foreign secretary, David Lammy, signed a joint statement with his French and German counterparts to urge Israel and Hamas to engage constructively to get ceasefire talks back on track.

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Germany’s future coalition partners to relax debt rules to boost defence budget

Conservative alliance and Social Democrats to propose exempting spending of more than 1% of GDP on defence

The prospective partners in Germany’s next government have said they will seek to loosen rules on running up debt to allow for higher defence spending.

They said they will also seek to set up a huge €500bn ($533bn ) fund to finance spending on Germany’s infrastructure over the next 10 years.

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Two dead after car driven into crowds in German city of Mannheim

Woman, 83, and man, 54, killed and several injured after attack by SUV driver during carnival celebrations

A car has rammed into crowds in the centre of the German city of Mannheim, killing two people and injuring several others, in what police described as a deliberate attack.

Police said they had arrested a man, the driver of a black Ford Fiesta, who was reportedly being treated for his injuries in hospital under tight police protection. Thomas Strobl, the interior minister of Baden-Württemberg state, said the suspect was a 40-year-old German man from the south-western state of Rhineland-Palatinate who was believed to have acted alone.

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Merz’s all-male team photo revives question of gender equality in Germany

Image posted on social media rekindles idea that prospective new chancellor has a Frauenproblem

Six beaming election winners huddled around a table and not a woman among them: a viral social media image of the man likely to be Germany’s next chancellor and his transition team has revived longstanding questions about whether Friedrich Merz can bridge a persistent gender gap.

“Not great optics” was among the more generous of the thousands of comments on the post by Merz’s Bavarian ally Markus Söder, which seemed to hark back to another time.

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AfD readmits two politicians excluded over Nazi-related remarks

After Sunday’s election the far-right party has decided to allow Maximilian Krah and Matthias Helferich to return to the parliamentary group

Two politicians for the far-right Alternative für Deutschland (AfD) who were sidelined over remarks they made relating to the Nazis have been welcomed back into its parliamentary group after the party’s historic performance in the German general election.

Maximilian Krah resigned from the AfD’s federal executive board before the European elections last June after telling an Italian newspaper that not all members of Adolf Hitler’s SS had been “automatically criminals”.

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German parliament in race against time to sign off on new defence fund

Friedrich Merz, expected to be next chancellor, has spoken of urgent need for ramped-up defence, but ‘blocking minority’ could form in future Bundestag

Germany’s outgoing parliament could be asked to sign off on a new defence fund in its final weeks as the conservative winners of Sunday’s election seek to balance geopolitical demands with the looming pressures of a new Bundestag hostile to military spending.

Since the victory of his CDU/CSU alliance, Friedrich Merz has spoken of the urgent need for Europe to ramp up its own defence capabilities, saying it needs “independence from the USA” amid an unpredictable Trump administration and a looming threat from Russia.

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Germany election: Merz says it’s ‘five to midnight’ for Europe

Leader of victorious conservative alliance says continent must build defence capability as US moves towards ‘America alone’ motto

The man expected to be Germany’s next chancellor has said Europe must act swiftly to increase its defence capability in the face of a US administration whose motto is moving towards “America alone”, adding: “This is really five minutes to midnight for Europe.”

In a wide-ranging press conference after his conservative alliance’s victory in Sunday’s federal election, Friedrich Merz made it clear his focus was on the turbulent geopolitical landscape, saying that although he would seek good ties with the US he was also ready for “the worst-case scenario”.

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Monday briefing: Merz will be Germany’s chancellor – but extremists are waiting in the wings

In today’s newsletter: The far-right AfD may have come second, but at 20% they have been held off by the performance of mainstream parties, with the CDU leader Friedrich Merz on course to be the new chancellor

Good morning. Germany’s elections always matter far beyond the country’s borders – but yesterday’s vote could be the most important in a generation.

After decades as the stable linchpin of European liberal democracy, Germany has found itself sucked into the same crises that are erupting all over the continent – over its economy, attitudes to immigration and the war in Ukraine. And after the shocking interventions of JD Vance and Elon Musk in favour of the far-right Alternative für Deutschland (AfD) party, the election became a symbol of a wider struggle for ideological supremacy – and posed a serious question over whether the centre can hold across the continent.

Ukraine | Volodymyr Zelenskyy has said he is not willing to cave in to intense pressure from the Trump administration to sign a $500bn minerals deal – adding that that he was ready to quit as president if it meant “peace for Ukraine” or membership of Nato.

Catholicism | Pope Francis, who is battling pneumonia and a complex lung infection, remains in a critical condition, the Vatican has said. Archbishop Rino Fisichella, a senior Vatican official, told participants at a mass in St Peter’s Basilica on Sunday morning they should make their prayers for Francis “stronger and more intense”.

Afghanistan | The Taliban have arrested a British couple in their 70s for “teaching mothers parenting with children”. Peter Reynolds, 79, and his wife, Barbie, 75, have been running projects in schools in Afghanistan for 18 years.

Farming | Hospitals, schools and prisons are to be urged to buy more British food, as part of a government push to heal a rift with farmers over changes to inheritance tax. The environment secretary, Steve Reed, will set a target of sourcing at least half of public sector food from farms with the highest welfare standards, which should benefit British producers.

Green economy | The net zero sector is growing three times faster than the overall UK economy, analysis has found, providing high-wage jobs across the country while cutting climate-heating emissions and increasing energy security. 22,000 net zero businesses generated £83bn in gross value added last year.

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Conservatives win German election but far-right AfD doubles support

Preliminary results show CDU/CSU will be largest party but success of Alternative für Deutschland likely to complicate formation of a government

The conservative opposition has won the most votes in Germany’s general election, preliminary results indicated, but a dramatic surge by the far-right Alternative für Deutschland (AfD) is likely to complicate the formation of a government to help spearhead a European response to growing global threats.

The CDU/CSU candidate, Friedrich Merz, was preparing on Sunday night to try to form a ruling coalition after clinching roughly 29% of the vote from a high turnout.

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Germany has voted. But what kind of government will it have?

The country faces weeks or even months of coalition negotiations after no party won a majority

It has been a extraordinary election in Germany, and the result has been keenly awaited around the world to see what new government might emerge in Europe’s largest but ailing economy.

Results show a clear win for the CDU/CSU centre-right alliance, followed by the far-right Alternative für Deutschland (AfD) – an anti-Islam party that has advocated “remigration” for migrants as well as German citizens deemed to have integrated poorly – in second place.

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Willingness to ease off ‘debt brake’ may decide the German election

Rule dating from 2009 that limits borrowing looks vulnerable as main political parties promise to revive stalled economy

Germany is used to running its economy with the brake on. Ever since the 2008 financial crisis Berlin has sought to burnish a reputation as the world capital of fiscal discipline, with a near-pious aversion to debt and pride in strong government finances.

Under a rule known as the “debt brake” – introduced in 2009 by Angela Merkel to show Germany was committed to balancing the books after the banking crash – the federal government is required to limit annual borrowing to 0.35% of GDP.

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St Pancras and Channel tunnel plan rail routes to Germany and Switzerland

Partnership comes as London station looks at ways to almost triple passenger numbers

St Pancras railway station in London and the Channel tunnel operator have agreed to work together to open up more trains from Britain to France, and routes to Germany and Switzerland.

The agreement is the latest sign of growing momentum for new passenger rail links from England across the Channel, after Great Britain’s only international station announced plans to triple the number of people who can travel through every hour.

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All eyes on far-right AfD in German election rocked by violence and US interference

Extremists tipped for second place after shifting debate to immigration and crime and winning endorsements from Musk and Vance

In the tumultuous German election campaign, which has been rocked by jaw-dropping US interference, a spate of violent attacks and rare fears for the country’s political stability, all eyes have been locked on the party most likely to finish second.

When the dust settles after Sunday’s vote and conservative opposition leader Friedrich Merz is – barring further surprises – elected chancellor, the 2025 race will be remembered as the moment the far-right Alternative für Deutschland, consistently polling in second place, went from sideshow to centre stage.

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‘Allo ‘Allo! Europe’s leaders get together dans Paris for emergency sommet | John Crace

Emmanuel Macron, Kier Starmer and others discuss Trump, Russia and Ukraine at hastily arranged conference

Emmanuel Macron: Bienvenu á Paris.

Keir Starmer: Bonjour, Monsieur le President. Thank you for organising this “once-in-a-generation” summit at such short notice.

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Two-year-old girl and her mother die from Munich car attack injuries

Afghan man was arrested on suspicion of deliberately driving car into trade union demonstration on Thursday

A two-year-old girl and her mother died on Saturday from injuries suffered in the car-ramming attack in Munich on Thursday that left 37 others injured, police said.

“Unfortunately, we have to confirm the deaths today of the two-year-old child and her 37-year-old mother,” a police spokesperson told AFP.

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Trump and Vance are courting Europe’s far right to spread their political gospel

US vice-president’s speech and meeting with Germany’s AfD chief signal administration’s wider plans for continent

The Trump administration is making a big bet on Europe’s hard right.

Speaking at a conference of Europe’s leaders in Munich on Friday, the US vice-president JD Vance stunned the room by delivering what amounted to a campaign speech against Germany’s sitting government just one week before an election in which the anti-immigrant, anti-Muslim AfD is set to take second place.

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Munich car attack believed to have had Islamist motive, says prosecutor

Gabriele Tilmann says suspect’s online communications point to extremism but investigators have found no links to jihadist groups

German police and prosecutors have said the Afghan suspect in a car ramming in central Munich that injured at least 36 people is believed to have had an “Islamist” motive and will answer to charges of attempted murder.

One day after the attack on a trade union rally during the final stage of the German election campaign, the chief prosecutor Gabriele Tilmann told reporters that online “communications” by the suspect, a 24-year-old asylum seeker, pointed to Islamic extremism.

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Two British nationals arrested in Iran on ‘security’ allegations, say state media

Photo appears to show UK ambassador to Iran meeting pair, whose detention comes after tit-for-tat releases with Germany and Italy

Two British nationals have been arrested in Iran and given access to the UK ambassador, Hugo Shorter, according to reports.

State media published photographs purportedly showing Shorter meeting two British “national security” suspects at the general and revolutionary prosecutor’s office in Kerman province, about 500 miles south-east of Tehran.

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Rediscovered, a young English novelist’s warning of the Nazi threat

Crooked Cross, Sally Carson’s ‘electrifying masterpiece’ from 1934, to be republished

Sally Carson was not an oracle or a prophet, just a young woman from Dorset, born in 1901. Yet she foresaw a dark and violent future for Europe and gave voice to those fears in a 1934 novel that is now being hailed as “an electrifying masterpiece”.

Carson’s book, Crooked Cross, predicted the scale of the Nazi threat and is to be republished for the first time this spring, ahead of the 80th anniversary of the end of the second world war. Controversial in its day, her novel had to walk a careful path to avoid the accusation that it was alarmist about the Fuhrer’s aims. A stage adaptation of her story was even censored, shorn of all its “Heil Hitlers”.

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