Merz

• UniCredit is pursuing a controlling stake in Commerzbank, with the German government showing signs of openness regarding its 12.7% ownership stake. • Berlin previously labeled UniCredit's hostile approach "unacceptable," citing concerns over job security, the stability of small and medium-sized enterprises, and Frankfurt's status as a financial hub. • The situation highlights the tension between the European single market and the tendency of nations to treat large banks as critical national economic infrastructure.

• Commerzbank shares are nearing a 52-week high following record earnings and a series of analyst upgrades. • The European Central Bank has signaled conditional approval for UniCredit's takeover bid, shifting the focus toward the integration process. • CEO Bettina Orlopp has adopted a more conciliatory tone, stating that cooperation with UniCredit could create mutual value.

• Commerzbank CEO Manfred Orlopp is meeting with UniCredit CEO Andrea Orcel to discuss a potential takeover of the German lender. • The European Central Bank (ECB) has formally begun a regulatory review of UniCredit's request to increase its stake in Commerzbank beyond 30%. • This move is critical as Orcel has targeted the fourth quarter of 2026 to complete the acquisition, while the German government considers blocking a minority stake.

• Friedrich Merz is leveraging the resignation of party heavyweight Jens Spahn to eliminate a political rival and stabilize his coalition. • The move facilitates a strategic cabinet reshuffle, allowing Merz to implement a political reset ahead of critical regional elections this fall. • These elections are particularly high-stakes in eastern Germany, where the far-right Alternative for Germany (AfD) is projected to perform strongly.

• German Chancellor Friedrich Merz has indicated a potential cabinet reshuffle following the resignation of Jens Spahn as parliamentary leader. • The departure of Spahn, a top figure within the CDU, increases political pressure on the ruling conservative party. • This leadership instability comes at a critical time as the government prepares for upcoming key regional elections.

French president hosts ‘coalition of the willing’ in Paris amid hopes that Ukraine’s recent advances could force Putin towards negotiationsFrench president Emmanuel Macron is going to host the Coalition of the Willing in Paris later today amid hopes that Ukraine’s recent advances in strikes on Russia could force Vladimir Putin to a negotiating table.The meeting at the Hôtel des Invalides – hosted just before Bastille Day – will bring together over 20 European leaders for further talks on how to help Kyiv and put more pressure on Moscow. Continue reading...

• The CDU/CSU-SPD coalition has agreed to a comprehensive package of tax, labor, and pension reforms following seven hours of intensive negotiations. • Led by Friedrich Merz, the reforms include significant tax cuts, a pension system overhaul, and updated regulations regarding sick leave. • These measures are designed to revitalize Germany's struggling economy and strategically counter the political rise of far-right parties.

Recommendations from commission propose gradual rise in retirement age to about 70 by the early 2090sEurope live – latest updatesGermany will gradually raise its retirement age to about 70 by the early 2090s under recommendations backed by the chancellor, Friedrich Merz, as a means of future-proofing the pension system for an ageing population.Presenting its findings on Tuesday, an expert commission set up to explore reforms to the pension system said retirement age should be linked to rising life expectancy and early retirement should be scrapped. Continue reading...

• World leaders have gathered in Evian-les-Bains, France, for the 2026 G7 summit to address critical global challenges. • Indian Prime Minister Narendra Modi has met with German Chancellor Friedrich Merz and is scheduled to hold discussions with U.S. President Donald Trump today. • European leaders aim to persuade Trump to sustain sanctions and military aid to Kyiv while establishing a diplomatic framework between Europe, Ukraine, Russia, and the U.S.

Chancellor says he no longer views US as land of opportunity amid ‘deeply polarising’ social climateFriedrich Merz, the German chancellor, already embroiled in a row with Donald Trump over the Iran war, has said he would not advise his children to study or work in the US in the current climate.Speaking to a conference of young Catholics in Würzburg, the conservative leader, viewed by many as a transatlanticist, said he no longer saw the US as the land of opportunity. Continue reading...

German chancellor downplays US military drawbacks and president’s barbs in TV interviewThe German chancellor, Friedrich Merz, has said he will not give up on working with the US president, Donald Trump, despite a spat between the leaders over the war in Iran.“I am not giving up on working on the transatlantic relationship,” Merz told the public broadcaster ARD in an interview due to air on Sunday night. “Nor am I giving up on working with Donald Trump.” Continue reading...

US president’s latest outburst comes a day after he suggested a possible reduction in US troops in GermanyWhy does the US have military bases in Germany – and will Trump follow through on his threat to cut numbers?Donald Trump has again lashed out at Germany’s chancellor Friedrich Merz, saying he should focus on “fixing his broken country” and trying to end the Russia-Ukraine war – and spend less time “interfering” in Iran.“The Chancellor of Germany should spend more time on ending the war with Russia/Ukraine (Where he has been totally ineffective!),” Trump wrote in a social media post. Continue reading...

US president’s statement follows comments by German chancellor that the US was being ‘humiliated’ in conflictUS president Donald Trump threatened to reduce the number of troops deployed in Germany last night, after chancellor Friedrich Merz said this week that the US was being “humilitated” by Iran.Trump said the US was “studying and reviewing the possible reduction of troops in Germany, with a determination to be made over the next short period of time.”“The Chancellor of Germany, Friedrich Merz, thinks it’s OK for Iran to have a Nuclear Weapon. He doesn’t know what he’s talking about! If Iran had a Nuclear Weapon, the whole World would be held hostage. I am doing something with Iran, right now, that other Nations, or Presidents, should have done long ago. No wonder Germany is doing so poorly, both Economically, and otherwise! President DONALD J. TRUMP” Continue reading...

Germany’s chancellor suggests Trump administration is being outwitted at negotiating table by TehranThe US is being “humiliated” by Iran’s leadership, according to Friedrich Merz, Germany’s chancellor, who suggested the Trump administration was being outwitted at the negotiating table by Tehran.Two days ago Donald Trump cancelled a trip by US negotiators to Islamabad for indirect talks with an Iranian delegation. A previous round in the Pakistani capital two weeks earlier, when JD Vance, the American vice-president, led the US delegation, broke up without progress. Continue reading...

The German chancellor has drawn condemnation from NGOs and members of his own governmentFriedrich Merz has drawn condemnation from NGOs and members of his own government after he called for the vast majority of Syrians living in Germany to “go back to their homeland.”The German chancellor, who was elected last year after promising a tough line on immigration in a bid to beat the far right, made the remarks during a visit to Berlin on Monday by the interim Syrian president Ahmed al-Sharaa. Continue reading...

Milan-based bank plans to up its near-30% stake in German lender to trigger formal talks despite strong opposition from BerlinTwo European banking powerhouses have become embroiled in a €35bn (£30bn) takeover battle after Italy’s UniCredit stepped up its long-running pursuit of German lender Commerzbank, despite strong opposition from the German government.UniCredit first took a stake of 9% in Commerzbank in September 2024 and has since built up its holding to just under 30%. It said on Monday it was pushing to increase that holding further and push the rival lender into formal merger talks. Continue reading...