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German business confidence rises despite Iran war energy shock

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Economy

Iran war effects on Europe: Is a recession already unfolding?

The eurozone’s private sector slipped back into contraction in April, marking its weakest performance in nearly a year and a half since November 2024, as the war in Iran hit services and fuelled inflation.

The Ring

Is Germany the sick man of Europe again? The Ring in Berlin

In this episode of Ring, recorded in the German capital, it’s Bundestag vs. European Parliament: Christian Democrat Sepp Müller and Leftist Martin Schirdewan go head to head to discuss the reform backlog in the EU’s largest economy.

Economy

Germany halves GDP forecast from 1% to 0.5% due to Iran war fallout

The German government has officially halved its economic growth forecast for 2026, citing the severe impact of energy shocks stemming from the Iran war. This revision reflects a significant cooling for Europe's largest economy.

Economy

German business expectations fall to their lowest levels since 2022

German business confidence dropped sharply in April, reaching its lowest point since the 2022 energy crisis.

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Economy

Germany cuts fuel tax as oil prices surge on Iran blockade

Following tense exchanges between Economics Minister Reiche and Finance Minister Lars Klingbeil, the government held talks over the weekend. Will the coalition succeed in easing the burden on citizens, or will it collapse?

World News

German soldier suspended after allegedly leaking defence purchase plan

Criminal and disciplinary investigations are reportedly currently underway but further details about the incident have not been released.

Economy

ZEW index: German investor sentiment hits lowest level in a year

German investor morale has plunged to its lowest level in almost a year, with sentiment in the eurozone also deteriorating, as the Middle East conflict rattles European markets.

Business

BMW profits fall 11.5% to pandemic-era low due to tariffs, China slump

BMW's operating profit fell 11.5% to €10.2 billion in 2025 — its lowest since the Covid pandemic — as tariffs and a China sales slump dragged the automotive segment's margin down to 5.3%.

Business

Rheinmetall expects 45% growth and defence pivot yet shares still fall

German arms maker Rheinmetall posted surging profits and forecast rapid growth for 2026 — but investors do not seem impressed, sending shares lower.

Business

Porsche's €3.9bn writedown cuts automotive profit by 98% in EV retreat

Two one-time charges nearly wiped out Porsche AG's operating profit in 2025, a collapse that highlights the challenges that lie ahead for Europe's long-term EV strategy.

Business

Volkswagen axes 50,000 jobs after profits collapse by nearly half

Volkswagen Group profits slumped by almost half in 2025. Trade conflicts, difficulties in China and the change in strategy at Porsche are putting Europe's largest car manufacturer under pressure.

Economy

Eurozone manufacturing at a turning point? PMI hits 44-month high

Eurozone manufacturing returned to growth in February, hitting a 44-month high as Germany led a factory rebound.

Economy

Investor optimism on European growth hits record high, survey finds

European investor optimism about economic growth has hit a record high, Bank of America’s latest fund manager survey shows, buoyed by hopes of German fiscal stimulus and defence spending.

Business

Sinking star: Mercedes operating profits dropped by more than 50%

Following a year marked by US tariffs and severe competition from China, the German car manufacturer Mercedes recorded a huge drop in operating profits in 2025.

Economy

German economic sentiment climbs to 4-year high, defying Trump tariffs

Germany’s economic confidence jumped to a four-year high in January. ZEW data show stronger optimism in export sectors, though markets remain cautious amid rising trade risks.

Economy

Can Europe's military spending revive economic growth?

Europe is ramping up defence spending, led by Germany, with economists expecting a modest boost to growth. While rising orders support activity, long production lags and structural headwinds may limit the economic pay-off.