German Economy Slows as Political Focus Shifts to NATO

Three leading economic research institutes have sharply cut Germany's growth forecast for 2026. They warn of a significant slowdown, citing weak global demand and high domestic energy costs. The revised prediction signals persistent challenges for Europe's largest economy. Separately, Chancellor Friedrich Merz called for Europe to take a stronger role within the NATO military alliance. He stated that European nations must increase their defense capabilities. The dual developments highlight Germany's concurrent economic pressures and evolving geopolitical stance.