World Business Report What will Germany’s new budget mean for the economy?
Sep 24, 2025
Germany's ambitious new budget aims to inject €126.7 billion into infrastructure and key industries, yet concerns linger over mid-sized firms being overlooked. Meanwhile, New Zealand welcomes its first female central bank governor amid fears of a double-dip recession. In a significant development for global health, a new agreement promises affordable HIV prevention drugs for many low-income nations. The discussions blend economic strategies with implications for Europe, making for a dynamic and insightful conversation!
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Germany's Economic Wake-Up Call
- Germany faces one of its toughest economic tests and must prioritise investment to revive growth.
- Underinvestment and rising competition, especially from China, left Germany needing urgent reforms and spending.
Target Core Industries Quickly
- Focus state support on core industries like automotive, steel and chemicals to protect the industrial backbone.
- Pair targeted meetings with broader reforms to boost growth and credibility with parliament and the public.
Manufacturers Fear Big Players Get Preferential Help
- Frank Proy and other manufacturers worry the government's industry focus will neglect smaller businesses.
- They call for creative incentives to keep mid-sized exporters competitive.