• A German study found basic income recipients continued working despite monthly payments.
• The study challenges claims that basic income discourages work and promotes dependency.
• The idea of a basic income has gained traction globally in recent years.

Some critics of basic income programs say that giving people "free" money will make them less likely to work. But a new study from Germany has found the opposite.

The long-running basic income study, called Mein Grundeinkommen, or My Basic Income, found that people who received no-strings-attached payments continued to work despite receiving monthly checks.

"Contrary to widespread claims, receiving a universal basic income was not a reason for participants in the study to quit their jobs," the researchers said in their findings.

The study ran for three years, during which 122 participants received $1,200 monthly payments to spend however they wanted. The experiment also had a control group of 1,580 people who did not receive a basic income. In the findings, the researchers said that the percentage of participants who had a job remained "almost identical" in both the control group and the group receiving the basic income.

"There was also no change in the number of hours worked a week," the study says. "On average, all study participants worked 40 hours — with or without a basic income."

The idea of universal basic income, or UBI, has gained traction in the United States and other countries in recent years. A UBI is when a government cuts a regular check to its entire population regardless of financial status to support, but not replace, their income.

Numerous cities and counties in the United States have also experimented with guaranteed basic income programs. These programs are similar to a UBI because they both provide no-strings-attached payments, but a guaranteed basic income typically goes to smaller, low-income groups, or vulnerable populations like new moms, Black women, or trans people.

Critics of these programs have likened them to "socialism."

In 2024, lawmakers in South Dakota, Iowa, and Idaho passed laws banning basic income programs at the city and county level. Republican State Sen. John Wiik, who sponsored the bill in South Dakota, said in a Senate committee meeting that basic income programs are a "socialist idea" that redistributes people's hard-earned money.

"Guaranteed income programs, also known as basic income, undercut the dignity in earning a dollar, and they're a one-way ticket to government dependency," Wiik said.

The German study, however, found that recipients maintained steady employment, showed improved mental health, strengthened self-determination, and improved financial stability.

"With a basic income, people actively build sustainable financial security for themselves — and also spend more money on others," the study says.

Jürgen Schupp, a researcher for the study, said that the results, particularly those related to labor, show that many clichés about universal basic income need to be reconsidered.

"I believe that for the urgently needed restructuring of social systems, all reform options must be considered — including universal basic income," he said in the report.

• Helene Sula and her husband, Michael, have visited hundreds of cities across the world.
• Sula said her favorite is a lesser-known German city that feels like it's out of a fairy tale.
• She said she loves Heidelberg's rich culture, beautiful castle, tasty foods, and lively festivals.

This as-told-to essay is based on a conversation with Helene Sula, 38, an author who runs travel-advice blog Helene in Between. She and her husband, who moved from Dallas to Europe in 2016, currently livein Montenegro. This interview has been edited for length and clarity.

For the past 10 years, my husband and I have been traveling around the world. We live a nearly nomadic lifestyle, spending about 80% of our time on the road.

We've visited dozens of countries across Europe, Asia, the Middle East, and Africa, and explored hundreds of cities — if not more — including Bangkok, London, New York City, Aix-en-Provence in France, Munich, Marrakesh in Morocco, and Riyadh in Saudi Arabia.

Of all the places we've been, Heidelberg, Germany, stands out as my favorite.

When I was 25, my husband and I decided to move abroad. We spent three years saving and planning, and in 2016, we finally made the move to Germany.

We had never set foot in Germany before, and we chose Heidelberg as our new home without knowing how long we'd stay. But the moment we began walking through its streets, we fell in love.

Heidelberg is absolutely beautiful. It's a 17th-century town with cobblestone streets, a river running through it, and a castle perched above. It felt like stepping into a fairy tale.

Heidelberg has a charming, classic vibe

We spent an entire year researching where to live in Europe, and Heidelberg felt like the best fit for us. It truly was — we ended up living there for three years.

I think the city is incredibly underrated, especially for American travelers. Bigger cities in Germany tend to be more popular because they offer a lot of attractions. They're also beautiful and easily accessible.

Take Munich, for example. You can fly there from almost anywhere. It's close to the Alps, hosts Oktoberfest, and has stunning architecture. The churches are absolutely amazing.

While I highly recommend visiting Munich, I think Heidelberg offers more of that true, classic, charming German feel. It's a place rich with culture that you can fully experience in just a few days without feeling too overwhelmed.

Heidelberg, with about 180,000 residents, is not technically a small town, but I'd still call it more of a medium-sized city. It's easy to get around, and you quickly start to feel like you know the place.

The city sits among hills with countless trails for walking and hiking. Our favorite trail is the hike up to Philosopher's Walk in Neuenheim, the oldest part of the city. It's a steep incline through really nice homes, and you get a good view of the Neckar River and Heidelberg Castle.

The weather in Heidelberg — and Germany in general — has been getting warmer over the years. It can actually get pretty hot in the summer.

While temperatures usually hover in the high 70s, it's not unheard of for them to reach the 90s, though that's still relatively rare. Many of the buildings and businesses still lack air conditioning, and sometimes, you can't find ice, which can be a bit of an inconvenience.

I find the winters to be very manageable. Temperatures can drop into the 20s and 30s Fahrenheit, but generally hover around the 40s. Snow is rare, occurring maybe once a year.

It's a down-to-earth university town with friendly locals

One of the main reasons we chose Heidelberg is that it's a university town.

Heidelberg University is one of the oldest universities in Germany. It brings a vibrant, youthful energy to the city, with a great mix of students, artists, and people interested in music and culture.

The city has a rich literary tradition, thanks in part to its status as a major university city.

Fun fact: Mark Twain actually spent quite a bit of time in Heidelberg. While people often associate him with floating down the Mississippi River, he also floated down the Neckar River here in Heidelberg. He loved the city, and his time there even inspired some of his writing.

Heidelberg is quite an affluent area, so you get the best of both worlds: a well-maintained city center and a variety of events. I think it's a really eclectic mix — there's some nightlife, not wild, but enough to keep things interesting.

As for the people, I think Germans can sometimes come off as cold — it's a cultural thing. But one-on-one, they are genuinely incredible and kind.

Once you form a friendship, it's very real and straightforward. For example, if a German says, "Let's get coffee," they mean it, which is very cool. In contrast, Americans might say that casually without intending to follow through.

It's an affordable town to visit and live in

Another reason I love Germany is that it's one of the cheaper European countries. Germany is rarely talked about in terms of budget, but I find the food and lodging in Heidelberg to be quite reasonable.

When we moved to Heidelberg in 2016, we rented a one-bedroom apartment with a large living area downstairs and a furnished kitchen for three years for $1,300. The landlord never increased the price.

Food is affordable in Germany, too. I mean, you can get a delicious butter pretzel for $1.69, or you can have a cup of coffee and cake — "kaffee und kuchen," as they call it — for under $3.39. You can even get a full meal for under $23, and that's going to include your glass of wine.

Germany is still very much cash-based, but it's changing.

Germany has an amazing public transportation system, which is an inexpensive and great way to get around. However, we moved our dogs abroad, too, so if I want to take them into the countryside for a walk, that can be really difficult. To get them out to the country — a journey that should take 15 minutes by car— can take 45 minutes to an hour by public transportation.

I moved to Germany thinking we wouldn't buy a car. Once we arrived and lived there for six months, we learned the necessity, especially for taking the dogs around and getting to smaller, more rural places.

Gas in Germany, and Europe in general, is pretty expensive compared to the US. Right now, it's $1.04 per liter in the US, versus $2.21 in Germany — so it's double the price.

There's always something to do in Heidelberg

Heidelberg has incredible castles, something you just don't find in the US.

The most famous is Heidelberg Castle, which has a lot of myths and legends. One involves the town mascot, a court jester named Perkeo from the 1800s. According to local legend, he is said to have only ever drunk wine, and the moment he took a sip of water, he died.

You can spot Perkeo all over the city. He's featured on the Christmas market displays and appears in various decorations at the castle and local restaurants.

Heidelberg has amazing food. You've got your typical sauerkraut and sausages. But there's also Käsespätzle, which is basically an elevated mac and cheese. Also, since Heidelberg is so close to the border with France, one of my favorite things to eat is Flammkuchen, which is kind of like a pizza, but has a very thin crust with sour cream and bacon.

It always made me laugh how often the city shuts down for festivals or markets.

Heidelberg has many festivals, not just Oktoberfest: There's a spring wine festival featuring "new wine"; a castle festival with fireworks that light up the city in summer; and the autumn festival, Herbstfest, in the old town — one of my favorites.

Another of my absolute favorite experiences is the Christmas market. Before moving to Germany, I had no idea how magical these markets could be. The stalls are hand-carved wooden huts, filled with music and glühwein, which is hot, spiced mulled wine.

I love Heidelberg so much that I return every year, even though we now live in Montenegro. My husband and I organize river cruise ships, and we bring our Instagram followers to the city. I think everyone should experience the magic of Heidelberg, especially at Christmastime.

• I moved from the US to Munich as a kid and enjoyed living there for many years.
• I wish tourists tried more of the local cuisine here — especially breads and cheeses.
• Visitors should expect many shops to be closed on Sundays and check out more underrated beer halls.

When I was 7 years old, my parents and I moved from the US to Munich, and I fell in love with the Bavarian city.

Although I no longer live there, I enjoyed it for many years, whether I was wandering the ancient city for hours to take in the museums, palaces, and cathedrals, or checking out the many beer gardens.

I get why it's a popular place for tourists (millions come here each year for just the city's famous Oktoberfest), and I've seen many of them make the same mistakes over and over when they visit.

Here are a few things I think you should know before coming to Munich.

The popular beer gardens are great, but don't forget to stop at some smaller ones.

Many visitors stop by the popular Augustiner-Keller and Hofbräuhaus breweries. Both centuries-old spots are pretty spectacular and tend to have a louder, more crowded atmosphere.

However, I also suggest visiting a few beer gardens and breweries that are more off the beaten path during your trip.

One of my favorites is Insel Mühle, a charming riverside beer garden in the northwestern part of the city that's attached to a hotel.

It has great beer and communal seating under chestnut trees — and I've found it usually has a quieter, more manageable crowd (with lots of locals).

Don't expect too much to be open on a Sunday.

Sunday is widely considered to be a day of rest in Germany, so many businesses and shops in Munich will be closed.

You'll still be able to find open restaurants, tourist attractions, or supermarkets, but I wouldn't plan on doing much local shopping on this day of the week.

If you're going to Oktoberfest, adjust your expectations and make a plan.

Munich's Oktoberfest has been famously celebrated for hundreds of years, and millions of attendees trek to the event each fall.

If you're going because you want to get drunk with big crowds of tourists, you'll probably have a blast. If not, you, like me, may not enjoy it very much.

Either way, you should rein in your expectations.

Although admission to Oktoberfest is free, coveted reservations for seats in beer tents and tickets to performances and rides can be difficult to come by. Do your best to secure these early.

Also, keep in mind that the beers are enormous and priced accordingly — and most vendors prefer or only accept cash.

I'd also be remiss to not warn visitors about the Kotzhügel‚ a grassy slope where revelers often retreat to relax … it earned the cautionary sobriquet "puke hill" for a reason.

Don't ignore local cultural norms.

While in Munich, do your best to be on time for all of your reservations and appointments. Showing up even a few minutes late to an obligation is generally considered to be rude, but many locals here find it especially offensive.

Addressing a new acquaintance by their first name can also be viewed as too intimate or overly casual in Germany. It can sometimes come off as rude, so I suggest refraining unless you're invited to do so.

It's not uncommon for people to address those they aren't close to with "frau" (similar to Mrs.) or "herr " (similar to Mr.) followed by a surname.

The local beer and pretzels are great, but don't skip out on trying the local cheeses and breads.

When I tell people to eat all the locally made bread and cheese in Munich, they look at me like I've never heard of beer. Fair enough, the city famously has a lot of great beer.

However, unlike places like France or Switzerland, Germany's diverse and delicious bread and cheese culture is not celebrated across the globe with the enthusiasm it deserves.

There are many incredible breads made in Germany, and some of my favorites include roggenbrot (a rye bread with a spicy crust) and König Ludwig Brot (a round sourdough wheat and rye bread with a soft, tangy interior).

In terms of cheeses, I suggest trying the local Cambozola, a creamy cow's milk offering with a nutty flavor and funky veins of blue mold, and Rauchkäse, which is semi-soft with a smoky flavor.

You won't want to miss trying the fantastic regional cuisine, either.

Food in this region is largely defined by carbs, cream, and meat. It's also incredible and should not be missed.

In addition to trying the famous prodigiously salted pretzels, I suggest visitors stop at street stalls and taverns to explore a range of local dishes, from kartoffelsuppe (creamy potato soup with sausage and veggies) to bratwurst (a German sausage that's often served with spicy mustard).

Remember to pack an umbrella.

Munich can get pretty rainy from May through August, although visitors should prepare for short (and sometimes sudden) showers throughout the year.

Pack a rain jacket and an umbrella when you visit, and mentally gird yourself for light occasional showers.

WASHINGTON — Vice President JD Vance said that the concessions that Russia is seeking from Ukraine to end the conflict between the two are too stringent, but he believes there is a viable path forward for peace and wants both to find common ground. 

"The step that we would like to make right now, is we would like both the Russians and the Ukrainians to actually agree on some basic guidelines for sitting down and talking to one another," Vance said here Wednesday at the Munich Leaders Meeting in Washington. 

"We think that if cool heads prevail here, we can bring this thing to a durable peace that will be economically beneficial for both Ukrainians and the Russians," Vance said. 

Vance appeared for a discussion with Ambassador Wolfgang Ischinger, president of the Foundation Council of the Munich Security Conference and the former German ambassador to the U.S. 

Russia's demands include Ukraine never joining NATO and preventing foreign peacekeeper troops from deploying to Ukraine following the conflict. Russia is also seeking to adjust some of the borders that previously were Ukraine's. 

Additionally, Ukraine is on board with a 30-day ceasefire, while Russia refuses to participate. Vance said that the U.S. is seeking to find solutions beyond the ceasefire. 

"We've tried to move beyond the obsession with the 30-day ceasefire, and more on what the long-term settlement look like, and we've tried to consistently advance the ball," Vance said. 

Vance has urged European nations to bolster defense spending and increase European independence, aligning with the Trump administration's "America First" agenda that has pushed NATO allies to beef up their own military spending.

The event comes as Ischinger recently cautioned that any attempts to establish a peacekeeping force in Ukraine to end the conflict between Moscow and Kyiv absent the U.S. could mean the "de facto end of NATO," according to Politico. 

Should the U.K. and France send a peacekeeping force there like they have both discussed without U.S. involvement, that could prompt Russia to accuse Ukrainians of starting a conflict, Ischinger said in a Politico interview published Monday. 

VANCE'S ‘AMERICA FIRST’ APPROACH GOES GLOBAL, TAKES HARDLINE MESSAGE TO GREENLAND 

"And therefore the Europeans in Ukraine would possibly be shot at, and would need to reply, to engage without the United States on their side," Ischinger said. "Quite frankly, that would be the end of NATO as we know it."

Vance previously appeared at the Munich Security Council in February, when he laid out the Trump administration’s stance that Europe "step up in a big way to provide for its own defense." 

He also cautioned that Russia and China do not pose as great a threat to European nations as the "threat from within," in regard to issues like censorship and illegal immigration.

European leaders pushed back on the remarks at the time, with German Defense Minister Boris Pistorius saying he perceived the comments as a comparison to "conditions in parts of Europe with those in authoritarian regimes."

This is a breaking news story and will be updated. 

Top US allies are discussing how to make Americans "feel the pain" after Trump hit their countries with tariffs and threatened to leave NATO. Politico's Eli Stokols and journalists in the Axel Springer network report on how US allies could retaliate in this video collaboration with Business Insider.

• Leavenworth is a Bavarian-style town in Washington that feels like a slice of Europe.
• The town has great German food, specialty shops, and buildings with European-inspired architecture.
• It's also surrounded by alpine views, waterfront trails, and incredible foliage in the fall.

There are spectacular mountain views just about anywhere you go in the Pacific Northwest.

However, the small mountain town of Leavenworth may just be one of the best spots to enjoy them from.

Just over a two-hour drive from Seattle, the Bavarian-style town is one of my favorite awe-inspiring places to visit for just a day or a whole weekend.

Leavenworth didn't always look like a Bavarian village.

In the late 1800s, this area was booming with a railroad and thriving logging and sawmill industries. A few decades later, the railroad was rerouted, and this area spent decades on the verge of becoming a ghost town.

However, in the 1960s, town leaders made a plan to draw in visitors by modeling Leavenworth after Bavaria, Germany, a popular spot with similarly stunning alpine views.

And so, Leavenworth was fully renovated and reborn with Europe as its inspiration. Today, it is one of Washington's most frequented tourist attractions.

The town is wonderful to visit during any season, but fall is my favorite.

As someone who lives in the Pacific Northwest, I'd say Leavenworth is a fantastic place to visit all year.

Spring brings sunny days with views of snow-covered peaks, and summer offers plenty of recreation opportunities on the nearby Icicle Creek and Wenatchee River.

In winter, the town sparkles with plenty of fresh snow and thousands of Christmas lights dressing up trees and buildings throughout town.

Fall is my favorite. You can see mesmerizing colors of autumn foliage throughout town while also enjoying pleasantly moderate temperatures. It's also when the town celebrates Oktoberfest.

The architecture is beautiful to look at.

When town leaders made the choice to turn Leavenworth into a tourist destination in the 1960s, specific architectural design requirements were put in place.

Every building in the downtown core has either been remodeled or built to match the town's Bavarian theme.

Many are colorful A-lined buildings with large overhanging roofs, small windows with adorable shutters, balconies with hanging flower baskets.

Strolling through town to admire the details of the charming buildings is a lot of fun.

The main downtown street is closed to motor vehicles.

In 2020, the city of Leavenworth closed its main downtown street to motor vehicles.

It was initially a response to the COVID-19 pandemic and the need for more room for social distancing on crowded streets, but the closure has stayed in place years later.

This has provided more outdoor seating for restaurants and tasting rooms. I think it's also made strolling through town more pleasant.

Although this decision means there are fewer parking spaces, there's still ample street parking a few blocks away, plus several public lots a short walk down the road.

Wandering into the unique shops is one of the best parts about visiting Leavenworth.

The town has specialty shops devoted to just about everything, including a Christmas store filled with ornaments, one dedicated to hats, one devoted to nutcrackers, and plenty of jewelers.

As you wander the shops, don't skip The Cheesemonger's Shop. Cheese lovers will find over 90 different types of cheese, along with a selection of salami, mustards, and crackers.

Don't miss a stop at The Gingerbread Factory.

The soft-iced gingerbread cookies from The Gingerbread Factory in Leavenworth are so good I'd never even try to recreate them at home — and I'm a former bakery owner.

The soft, flavorful heart-shaped gingerbread cookies with frosting and rainbow sprinkles are the perfect treat for enjoying in the downtown park or taking home.

The shop, which has been open for nearly 40 years, also makes plenty of other goodies, including gingerbread people, cupcakes, and incredibly intricate gingerbread houses.

You can't leave Leavenworth without trying a giant soft pretzel.

As a Bavarian-themed town, multiple restaurants serve German food and giant soft pretzels.

The best spot I've found to sit and enjoy a pretzel is at München Haus beer garden. It only has outdoor seating, but there are fire-pit tables and heaters to keep visitors warm on chillier days.

Menu highlights include a warm pretzel with a side of cheese sauce made from Washington's Beecher's cheddar, Bavarian sausages, a wide array of mustards, and plenty of options for beer on tap.

If you're staying in town, take a walk along the waterfront.

Just a few blocks from downtown is Waterfront Park, a stunning accessible space to take a stroll. True to its name, most of the park's trails are along the waterfront.

In summer, you can watch people floating or paddleboarding the Wenatchee River. In fall, spot spawning salmon and take in all the golden autumn hues of the trees.

Plus, there are more wonderful views and outdoor experiences just minutes from downtown.

You could easily spend a whole day or weekend in downtown Leavenworth, but the area is also a major destination for hikers, rock climbers, and those who love whitewater rafting.

Even just five minutes from downtown is one of the most accessible hikes in the area, the Old Pipeline Bed Trail. It's a relatively flat 2-½-mile trail along the Wenatchee River.

It makes for a nice escape into nature just before heading into town for lunch or dinner.

• Stuck at home in 2020, my partner and I talked about moving abroad.
• He started looking for a job in Berlin, and within three weeks, he had a job offer.
• We've been in Germany for years and, at first, experienced culture shock.

It took me 15 years and one month to move abroad. For the longest time, I had wanted to learn more about life around the world, yet I was overwhelmed by the idea of immigrating. There was so much to consider — 193 countries to choose from, languages to learn, and logistics to manage.

I spent my 20s pining for a European lifestyle, even promising my cat that he would someday be a Parisian swinging his paw over some balcony ledge above the cobblestone alley. I learned Spanish, then French, and then backpacked Europe for three weeks on a budget to visit the major cities I thought I might prefer. I labored over possibilities and preparations while taking absolutely no action.

Fast-forward to 2020, when the pandemic hit. My partner of two years and I had no choice but to sit inside and talk about the future.

The "what-ifs" poured out. What if we moved abroad in the next year? What if we tried Germany since they issue 72% of the EU's Blue Cards (equivalent to US Green Cards)? What if my partner, who was an office worker while I was a startup founder, changed his LinkedIn profile to "searching for a job in Berlin"?

And that's how it all happened.

He had a job offer within 3 weeks

Within a week, my partner was invited to an interview. The next week, he had a second interview. The week after that, he received the job offer. Suddenly we were in Chicago applying for visas to let us move abroad while all international borders were closed. Then we were packing up the apartment we had moved into only a month before and saying goodbye to our friends and family over Zoom.

On Inauguration Day 2021, we got on a plane headed toward Berlin. We haven't looked back.

We landed in a temporary furnished apartment, where we spent our first three months getting oriented and organized. That provided a place to feel safe while we began rebuilding our lives and belongings.

My partner began his job, I shifted my consulting calendar to Central European Time, and we began apartment hunting. Looking back, we struck gold with our apartment: we were first in line at a newly completed building and got our pick of apartments. We later moved to an even better apartment in the same building while simultaneously lowering our cost of living due to rent-control laws. That compared to today's six-month average hunt and the cost of new rental contracts having doubled.

This month, four years into our adventure, we adopted a cat. Welcoming him underscored that this new city is now truly home.

We experienced culture shock at first

The culture shock of moving from Detroit to Berlin has been, at times, hysterical. We had to get used to nudity fast — the world-renowned spas do not allow clothing inside the saunas. In summer one may happen upon a nude sunbather in the park. When I went for my first OB/GYN appointment, I was not offered a smock.

We were also met with the incredible friction of German techno-bureaucracy. I was completely unprepared for the urgent need to have access to a fax machine in the 2020s. Paper is still king, including in money, and my partner (to whom I am married) is unable to pick up my packages from the drop-off center without a power of attorney signed by me.

I counted my lucky stars that we were from a state that has driving reciprocity with Germany. Unlike in the US, one must also carry a separate I.D. card — a driver's license is only a driver's license. It must stay in its lane.

Techno can be heard everywhere at all hours of the day. Locals love that I am from Detroit, the sister-techno-city to Berlin. I internally cheered for the stout man dancing on a moving e-scooter down the main road with a Bluetooth speaker strapped to his belt.

This city has also wrapped us in welcome. The universal healthcare system has relieved me of what used to be unknown ailments. I'm considering getting my Ph.D. just because it's free (aside from the 200€ admin fee).

It's been such a relief to no longer own a car — when I need one, I find one to rent in an app, usually parked right on my street. Berlin is well-known for its expansive green spaces. It's been a pleasure to find that they are the primary gathering places in the city. Even in winter, one can find barbecue's and birthday parties congregating in the parks.

All the work I did to prepare was unnecessary. I didn't speak a lick of German before we moved. I didn't go after a student visa. Packing to move abroad felt like moving apartments — keep some, give some, store some. Getting on the plane to move abroad could have easily just been for a vacation. Those parts felt simple. The 15-year anticipation was what was hard.

• Germany's economy minister criticized Elon Musk's zero-tariff proposal as a sign of "weakness."
• Robert Habeck said Musk should instead pressure Trump to lift tariffs, including the EU's.
• Musk's call for zero tariffs comes amid market chaos after Trump's "Liberation Day" tariffs.

Germany's economy minister slammed Elon Musk's call for zero tariffs between the US and Europe, calling it a sign of "weakness" in response to growing economic turmoil.

"I think it's a sign of weakness — maybe of fear," Robert Habeck told reporters on Monday. "If he has something to say, he should go to his president and say: 'Before we're talking about zero tariffs, let's stop the mess you've just made in the last week.'"

Musk's comments came on Saturday when he proposed a "zero-tariff" system between the US and Europe. This was just days after President Donald Trump announced baseline "reciprocal" tariffs on dozens of trading partners, including a 20% tariff rate on the European Union.

"This is ridiculous," Habeck added. "The only interpretation I have is that he now sees that his own companies, but even the economies, are going to crumble because of the mess they have made. So, he's afraid."

Markets reacted sharply to Trump's tariff announcement, with the S&P 500 plunging 10% over two days and the Nasdaq 100 entering a bear market for the first time since 2022.

The sell-off deepened on Monday as investors saw little indication that Trump would back down and foreign nations prepared to retaliate.

Last week, European Commission President Ursula von der Leyen said the EU was "finalizing" a package of countermeasures against the steel tariffs and was preparing further countermeasures "to protect our interests and our businesses."

While the UK and Australia have signaled they would not retaliate, China and Canada have pledged to respond.

Analysts have begun slashing year-end market forecasts, warning of heightened recession risks as trade tensions escalate.

A German bodybuilder who starred in the Netflix series "Dogs of Berlin" died this week after reportedly having a heart attack while on the treadmill.

Vittorio "Vito" Pirbazari's death was announced by his friend, Said Ibrahim, in an Instagram post.

Pirbazari had recently recovered from a torn pectoral muscle.

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An Instagram page for a film the 44-year-old starred in also announced his death.

"The entire ‘HAPS’ team deeply mourns the loss of Vittorio Pirbazari. Our thoughts are with his family. We will keep you in loving memory - thank you for your warmth, your creative spirit and for being a part of our journey. R.I.P.," the "Haps" Instagram page wrote.

The Instagram post featured a video montage of Pirbazari with a featured photo of him in black and white.

RED SOX INK TOP PROSPECT TO BIG EXTENSION AFTER JUST 5 MLB GAMES

Ibrahim wrote that Pirbazari had a heart attack while working out on the treadmill.

Pirbazari also starred in the "Hardgainer" series on YouTube, according to the German outlet Blid.

In writing about his recovery from his chest injury, Pirbazari said he was focusing on legs and cardio, and he would be taking it "slowly."

"I haven't been able to pull much exercise for the last 3 months," he wrote.

"The important thing for me is only one thing, not to give up and let go and to get better day by day, week by week."

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• Germany is deploying troops to another country on a long-term basis for the first time since World War II.
• It's putting thousands of soldiers in Lithuania, a NATO member that borders Russia.
• It described the move as an effort to protect NATO. Germany's defense spending is also rising.

Germany's armed forces, the Bundeswehr, announced on Tuesday that they'd created a new brigade, the 45th Armored Brigade, to be stationed in Lithuania.

It will be the first long-term deployment of German soldiers to another country since World War II, the Associated Press reported.

Brig. Gen. Christoph Huber, the commander of the 45th Armored Brigade, said that with its creation, "we're not only moving toward operational readiness, we're taking responsibility."

"For the alliance, for Lithuania, for Europe's security," he said. "As a sign of our determination to defend peace and freedom with our partners."

Russia's invasion of Ukraine has sparked a surge of defense agreements and spending among European countries.

When plans were first made for the 45th Armored Brigade in 2023, Germany described it as part of growing efforts by NATO members to boost both their own security and the security of NATO's eastern borders.

Germany's defense minister, Boris Pistorius, previously said, "With this war-ready brigade, we're taking on leadership responsibility on NATO's eastern flank."

The new brigade is made up of several battalions and will have about 5,000 soldiers and civilian staff, the Bundeswehr said this week.

It added that the brigade's command facility was already fully operational and that the aim was to have it at full wartime readiness by 2027.

Lithuania — which borders the Russian enclave of Kaliningrad and the close Russian ally Belarus — is one of the countries that has sounded the alarm the loudest that Russia could move beyond Ukraine to attack elsewhere in Europe.

It's also one of NATO's biggest defense spenders by proportion of GDP and one of Ukraine's biggest allies, describing Ukrainian troops as the ones who are protecting all of Europe.

There are already NATO troops in Lithuania, on a rotating basis, with a multinational battle group led by Germany. NATO countries have also deployed assets such as fighter jets and air defenses there.

US troops are among those stationed in Lithuania, though their long-term future is less clear, with President Donald Trump critical of US allies, of NATO, and of assistance to Ukraine.

Dovilė Šakalienė, Lithuania's defense minister, told Business Insider in February that her country wanted US troops to stay and that she expected the US could see "eye to eye" with countries who pay their part when it comes to defense.

"We do our part," she said, adding that she expected the US to do its part, too.

Lithuania has also been strengthening its border with Russia.

Germany's new brigade is the latest in a series of measures introduced by the country since Russia's full-scale invasion of Ukraine in February 2022.

It spent 1.51% of its GDP on defense in 2022, which jumped to an estimated 2.12% in 2024, according to NATO.

The rise in defense purchases by Germany, and Europe more broadly, has been a boon for the continent's defense industries.

The German arms manufacturer Rheinmetall said in March that it expected sales this year to rise by 25% to 30%.

Germany's defense spending has increased less than some of its allies: It ranked 15th out of 31 NATO members for defense spending as a proportion of GDP in 2024, according to NATO estimates.

But it has vowed to do more.

After grappling with its World War I and World War II legacies, which led to an avoidance of heavy militarism, Germany has committed to major military moves.

Lawmakers this month voted to alter the German constitution in a way that would unlock billions of dollars that could be used for defense spending.

Šakalienė, Lithuania's defense minister, told BI in February that Europe "needs to up our defense spending very fast and very significantly."

She said Europe needed to be able to match the US and to match Russia, which was escalating its own defense production: "We need to catch up to the speed of Russia," she said.

The first flight of Isar Aerospace's Spectrum rocket didn't last long on Sunday. The booster's nine engines switched off as the rocket cartwheeled upside-down and fell a short distance from its Arctic launch pad in Norway, punctuating the abbreviated test flight with a spectacular fiery crash into the sea.

If officials at Isar Aerospace were able to pick the outcome of their first test flight, it wouldn't be this. However, the result has precedent. The first launch of SpaceX's Falcon 1 rocket in 2006 ended in similar fashion.

"Today, we know twice as much about our launch system as yesterday before launch," Daniel Metzler, Isar's co-founder and CEO, wrote on X early Monday. "Can't beat flight testing. Ploughing through lots of data now."

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Seven years ago, three classmates at the Technical University of Munich believed their student engineering project might hold some promise in the private sector.

At the time, Daniel Metzler led a team of 40 students working on rocket engines and launching sounding rockets. Josef Fleischmann was on the team that won the first SpaceX Hyperloop competition. Together with another classmate, Markus Brandl, they crafted rocket parts in a campus workshop before taking the leap and establishing Isar Aerospace, named for the river running through the Bavarian capital.

Now, Isar's big moment has arrived. The company's orbital-class first rocket, named Spectrum, is set to lift off from a shoreline launch pad in Norway as soon as this week.

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• Tesla workers in Germany are asking for better working conditions and more breaks.
• The petition follows a global decline in Tesla sales and backlash against CEO Elon Musk.
• Tesla's challenges in Germany also include anti-Musk sentiment and environmental protests.

Tesla workers at a German factory say working conditions don't allow them enough time for drinking or bathroom breaks.

Over 3,000 workers at a Tesla gigafactory near Berlin have signed a petition asking for more breaks and an end to intimidation from management, according to a statement from German metalworker's union IG Metall.

"There often isn't even time to drink or go to the toilet," the union wrote in the statement. "No one can keep going like this until they retire."

The workers are calling on Tesla to introduce short paid breaks and increase staffing levels to end "chronic understaffing" at the plant.

It's the latest clash between workers and management at the factory, which is Tesla's only production facility in Europe.

Last year, local media reported that some employees at the factory had received visits at home from their managers after they had called off sick.

Concerns about high sick rates at the German factory even drew the attention of Elon Musk, who said he would investigate the absences.

At the time, an IG Metall union official described the home visits as "absurd," and the union earlier this week accused Tesla of challenging employee sick notes and withholding wages.

Tesla did not respond to a request for comment.

The union's activity comes at a precarious time for Tesla, as the company grapples with lower sales globally amid rising sentiment against CEO Elon Musk.

Car sales across Europe plunged last month. Sales in Germany fell by 76%, 53% in Portugal, 48% in Norway and Denmark, and 45% in France, compared to a year ago, according to government data.

Protests have spread worldwide since Musk began working with the White House's DOGE office in January. Campaigns with the slogan "Don't buy a Tesla" have been used as a rallying cry in cities including Berlin, and some owners are offloading their Tesla cars.

Tesla's headaches in the continent follow Musk's involvement in shaking up European politics.

Earlier this year, Musk sparked outrage in Germany when he endorsed the AfD, a right-wing political party. In January, he also urged British voters to back Reform UK, a populist party led by conservative Nigel Farage, a key figure in the UK's 2016 referendum, to leave the European Union. Musk met with him at President Donald Trump's Mar-a-Lago resort in December.

The unionists said they planned to hand over their petition to Tesla management during a worker's assembly on Thursday.

The factory employs around 10,500 people, according to union estimates.

Businesses in Germany are required to set up "works councils" to mediate between employees and management.

While IG Metall is the largest group on the Tesla Works Council, it does not have a majority — a rarity in Germany's heavily unionized auto industry that limits the union's power to negotiate over wages and working conditions.

Last year, about 800 activists set up a protest camp in Grünheide, where the factory is located, and clashed with police as they attempted to storm the Tesla premises. The demonstrators argued that Tesla's plan to expand the gigafactory would hurt the local environment and threaten the drinking water supply.

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• The Henley Passport Index ranks the most powerful passports in the world for visa-free travel.
• Singapore is in the top spot with its passport, which allows holders to travel to 193 countries.
• The US passport can access 182 countries — it's tied for 10th place with two other countries.

Thinking of visiting Brazil, Australia, or India with a US passport this summer? Not so fast ... or at least not before securing a visa.

Some of the best wonders of the world require US citizens to obtain a visa before takeoff, an inconvenience in planning that long-awaited international getaway.

US passport holders can access 182 countries globally without a visa, putting it in 10th place among world passports on the global mobility spectrum, according to the 2025 Henley Passport Index. Passports from 33 other countries provide more global mobility than a US passport and two other countries are tied with the US for mobility.

The index is a ranking of passports based on how many countries their holders can access without a visa and is based on data from the International Air Transport Authority.

Singapore is in the top spot with its passport, which allows holders to travel to 193 countries without first securing a visa. Japan had previously held the No. 1 position but has since fallen to No. 2, joining South Korea with access to 190 countries.

Below are the countries with the most powerful passports, ranked by ascending number of visa-free travel options, based on the Henley Passport Index. This ranking is accurate as of May 2025.

10. Lithuania, Iceland, and the United States

Passport holders from these countries can visit 182 countries without visas in 2025.

Until April, US citizens were able to visit 183 countries visa-free. However, Brazil now requires US citizens to secure a visa before entering the country, dropping US passport holders one spot on the Henley Passport Index.

9. Croatia, Latvia, Slovakia, and Slovenia

Holders of these passports can visit 183 countries without a visa in 2025.

8. Estonia, Canada, and the United Arab Emirates

Travelers can visit 184 countries without a visa in 2025 if they have a passport from Estonia, Canada, or the United Arab Emirates.

7. Australia, Czechia, Hungary, Malta, and Poland

Travelers can visit 185 countries without visas in 2025 with a passport from Australia, Czechia, Hungary, Malta, or Poland.

6. United Kingdom

Holders of UK passports can visit 186 countries without a visa.

5. Greece, New Zealand, and Switzerland

Travelers can visit 187 countries without a visa in 2025 if they have a passport from these countries.

4. Austria, Netherlands, Portugal, Sweden, Norway, Luxembourg, and Belgium

These passport holders can visit 188 countries without visas.

3. Ireland, Finland, Denmark, France, Germany, Italy, and Spain

These passports give access to 189 countries without a visa.

2. Japan and South Korea

Holders of passports from Japan and South Korea can visit 190 countries without a visa.

1. Singapore

Travelers can visit 193 countries without a visa in 2025 if they have a passport from Singapore.

Zoe Rosenberg contributed to an earlier version of this report. This story was first published in January 2023 and updates were made in January 2024, June 2024, October 2024, March 2025, and May 2025.

• A Eurowings flight from Germany couldn't land in Norway due to high winds.
• The Airbus A320 diverted to Finland in the hope that the weather would calm down.
• The winds only got stronger, so the 120 passengers ended up back in Düsseldorf.

More than 100 passengers endured an eight-hour flight to nowhere with two diversions after strong winds prevented some planes from landing in northern Norway.

Eurowings Flight 9250 was scheduled to be a three-and-a-half-hour journey from Düsseldorf, Germany to Tromsø, Norway.

However, as it approached the Arctic city, air traffic control reported wind speeds were above the maximum limit for a safe landing, an airline spokesperson told Business Insider.

Data from Flightradar24 shows how the Airbus A320 then turned southeast to Rovaniemi, Finland, about 30 minutes away.

The plane waited in Rovaniemi for about an hour, hoping the weather would improve, before setting off again, the Eurowings spokesperson said.

"Unfortunately, the second attempt also failed due to the weather, so the pilots decided to fly back to the base in Düsseldorf," they added.

Passengers were given hotel accommodation, or those who lived nearby went home, Eurowings said. There were 120 passengers and six crew on board.

Another flight operated by the airline took off from Tromsø on Sunday morning — suggesting passengers arrived around 16 hours later than initially scheduled.

"Several airlines were affected by the weather situation in northern Norway and Tromsø on Saturday — around a dozen landings could not be carried out as planned," the Eurowings spokesperson said.

Eurowings is Lufthansa's budget carrier, based in Düsseldorf. It was formed in 1993 and Lufthansa took a stake in 2001.

This is far from the first time that strong winds have caused difficulties for passengers.

In February, a Neos flight bound for Iceland diverted to Scotland after strong winds prevented two landing attempts.

A month earlier, there were at least two flights to nowhere as Storm Éowyn brought dangerously high winds to some parts of the UK and Ireland.

And last year, Ryanair passengers flying less than 200 miles from England to Ireland were diverted to Paris due to a storm.

• It's a bad day to try to take a flight to or from Germany.
• A mass strike has caused huge disruption at the country's airports on Monday.
• 94% of flights were canceled at Frankfurt Airport, the country's busiest, a German news agency said.

Hundreds of thousands of passengers are facing disruption due to a strike in Germany, which has led to almost all flights at the country's busiest airports being canceled Monday.

The 24-hour walkout began at midnight on Monday and immediately caused mass disruption.

At Frankfurt Airport, the country's busiest, 94% of the day's 1,116 scheduled takeoffs and landings have been canceled, the German news agency dpa reported.

"There will be massive disruptions at Frankfurt Airport all day today," its website says, adding that passengers should not travel to the airport.

Munich Airport expected operations to be "severely disrupted," while Berlin Brandenburg Airport said it will have no regular flights.

According to data from Cirium, 108 flights are scheduled between Germany and the US on Monday, accounting for over 31,000 seats.

On Friday, the service workers union ver.di called on public-sector employees and ground and security staff to go on strike.

It also targeted airports in Hamburg, Bremen, Hanover, Düsseldorf, Weeze, Dortmund, Cologne/Bonn, Leipzig/Halle, Stuttgart, and Karlsruhe/Baden-Baden.

Jens Ritter, the CEO of flag carrier Lufthansa, said in a Sunday LinkedIn post that he was "stunned and really worried."

"What Verdi calls a 'warning' strike is again bringing air traffic to a halt," he added, and called for "cooperation instead of confrontation."

A warning strike is a common tactic in German labor negotiations. Monday's action relates to two separate disputes — one for airport security workers and a wider one for public-sector employees.

Ver.di said negotiations for the more than 2.5 million federal and local government employees across Germany will continue on Friday.

It is calling for an 8% pay increase with a minimum increase of 350 euros ($380) a month, plus higher bonuses for stressful shift work and three more days off.

For aviation security workers, the union wants better occupational health and safety, 30 days of holiday, an annual bonus increase, and other bonuses.

Ver.di also wants restrictions on fixed-term contracts, saying that most aviation security specialists are hired on 24-month contracts, many of whom are then replaced by newly trained employees.

"Public employers should know that we are assertive. This will be made clear again in the coming days," said ver.di chairman Frank Werneke on Monday.

The victory for Germany’s conservative opposition in Sunday’s election was the latest example of the "Trump effect internationally," according to Ned Ryun, the founder and CEO of American Majority.

"I think you're really seeing is many people waking up and realizing how immoral their leaders are. The moral imperative of every national leader is to prioritize, protect and advance his or her people and nation's interests on every issue," Ryun told Fox News Digital. "To not do that, in fact to sell out your people via terrible trade deals or terrible immigration policy, is deeply immoral."

The comments come after Friedrich Merz of Germany’s center-right Christian Democratic Union (CDU) won the country’s national election Sunday, ousting incumbent Chancellor Olaf Scholz of the center-left Social Democratic Party (SPD).

The election also saw the rise of Germany’s right-wing Alternative for Germany (AfD) party, which finished second in the voting, according to exit polls.

TRUMP CELEBRATES CONSERVATIVE PARTY WIN IN GERMANY

The conservative victory in Germany was powered largely by voter discontent with a growing illegal immigration crisis in the country and across Europe, and a revolt against established policy that has been led by President Donald Trump.

"I think more and more politicians are speaking out about it because it's an existential crisis that's dawning on not only some politicians but a growing number of the populace," Ryun said. "This isn't just about the incredible economic costs of immigration being shouldered by the people of a given country. It's about who will we be as a people in the future? What will it mean, if anything, to be a citizen of a country? And what will it even mean to be a country if there are no real borders and mass migration?"

"I think you'll have some indication on the spread of this by what happens with Vox in Spain, AfD in Germany in the next elections, etc.," he added.

Trump himself welcomed the news of the conservative victory in Germany in an all-caps post on social media, calling the result a victory for common sense.

"LOOKS LIKE THE CONSERVATIVE PARTY IN GERMANY HAS WON THE VERY BIG AND HIGHLY ANTICIPATED ELECTION," Trump wrote in a post on Truth Social. "MUCH LIKE THE USA, THE PEOPLE OF GERMANY GOT TIRED OF THE NO COMMON SENSE AGENDA, ESPECIALLY ON ENERGY AND IMMIGRATION, THAT HAS PREVAILED FOR SO MANY YEARS.

"THIS IS A GREAT DAY FOR GERMANY, AND FOR THE UNITED STATES OF AMERICA UNDER THE LEADERSHIP OF A GENTLEMAN NAMED DONALD J. TRUMP," he added. "CONGRATULATIONS TO ALL — MANY MORE VICTORIES TO FOLLOW!!!"

GERMANY’S NEW CONSERVATIVE LEADER LOOKS TO ‘ACHIEVE INDEPENDENCE’ FROM US

But it remains to be seen just how well Trump will be able to work together with the new German government, with Merz making clear shortly after his victory that it would be an "absolute priority for Germany to "achieve independence" from the United States.

"I would never have thought that I would have to say something like this in a TV show but, after Donald Trump's remarks last week... it is clear that this government does not care much about the fate of Europe," Merz said on Sunday. "My absolute priority will be to strengthen Europe as quickly as possible so that, step by step, we can really achieve independence from the USA."

That skepticism of a new age of cooperating between the U.S. and Germany is shared by Ryun, though he believes Trump will ultimately get what he wants in the form of greater European contributions to its own defense.

"I think Trump will actually have very few opportunities with this new government in Germany," Ryun said. "I think Trump will get what he wants ultimately in forcing Germany and the rest of Europe to grow up. We're not going to fund your national defense anymore so those countries can over invest in social welfare programs. Time to step up to the plate and act like adults and live in reality."

Some of that could change in the future, Ryun stressed, noting that the right-wing AfD party is likely to get locked out of Germany’s coalition government, despite finishing second in Sunday’s election, though the party’s continued momentum could see it make its way into the majority by Germany’s next election.

The largest issue in that election, Ryun believes, will still be immigration.

"I think AfD will be completely shut out, but I think in the next election it could even become the majority party in Germany," Ryun said. "The reason I think AfD will see future success is that Merz and the CDU have already made it abundantly clear that they've no intention of shutting the borders down."

President Donald Trump celebrated on Sunday after German conservative opposition leader Friedrich Merz claimed victory in a national election, ousting Social Democrat incumbent Chancellor Olaf Scholz.

"LOOKS LIKE THE CONSERVATIVE PARTY IN GERMANY HAS WON THE VERY BIG AND HIGHLY ANTICIPATED ELECTION," Trump wrote in a post on Truth Social. "MUCH LIKE THE USA, THE PEOPLE OF GERMANY GOT TIRED OF THE NO COMMON SENSE AGENDA, ESPECIALLY ON ENERGY AND IMMIGRATION, THAT HAS PREVAILED FOR SO MANY YEARS.

"THIS IS A GREAT DAY FOR GERMANY, AND FOR THE UNITED STATES OF AMERICA UNDER THE LEADERSHIP OF A GENTLEMAN NAMED DONALD J. TRUMP," he added. "CONGRATULATIONS TO ALL — MANY MORE VICTORIES TO FOLLOW!!!"

Germany’s center-right Christian Democratic Union (CDU) won Sunday's national election, with the right-wing Alternative for Germany (AfD) finishing a strong second, according to exit polls.

TRUMP SET TO MEET WITH WORLD LEADERS IN DC DURING BUSY WEEK AS RUSSIA-UKRAINE PEACE TALKS CONTINUE

The snap election came as the European nation grapples with illegal immigration and a souring economy. CDU leader Merz is expected to take a harder line than Scholz on immigration, though not as much as AfD supporters have called for.

Merz, whose party got about 29% of the vote, must form a coalition with one or more of the other parties, but has said he will not do so with AfD.

ECONOMY, IMMIGRATION, ELON MUSK AT CENTER OF GERMAN ELECTION; CONSERVATIVE CANDIDATE FAVORED TO WIN

Merz has said he will execute a 15-point plan to tackle immigration, including tightening the borders and deporting rejected asylum seekers. AfD wants to deport migrants en masse.

While the AfD may be frozen out of the incoming coalition, it doubled its vote total from the last election.

Endorsed by Trump and Elon Musk, and led by Alice Weidel and Tino Chrupalla, the party believes it has built momentum for the next election, expected in 2029.

• Germany's center-right alliance is headed to victory in the country's latest federal election.
• The CDU and its Bavarian sister party, the CSU, are set to win about 29% of the vote, exit polls say.
• The far-right Alternative for Germany party is set to take second place.

Germany's center-right alliance appears set to win the country's latest federal election, which comes at a critical moment for Europe's largest economy.

The latest exit polls show the Christian Democratic Union and its Bavarian sister party, the Christian Social Union, with roughly 29% of the vote, with the Elon Musk-backed Alternative for Germany in second with around 21% of the vote.

German Chancellor Olaf Scholz's center-left Social Democratic Party is set to come in third, the polls showed.

This means the CDU's Friedrich Merz is poised to become Germany's next chancellor.

Single parties rarely win majorities in German elections, so Merz will need the support of one or more parties to secure a majority in government. Merz's most likely options for a coalition will be with the Social Democrats or the Green Party, with the possibility of a three-party coalition pending the final results.

The snap election followed the collapse of Germany's governing coalition in November after Scholz fired then-Finance Minister Christian Lindner, the chair of the Free Democratic Party, after Lindner rejected Scholz's demand to suspend Germany's debt brake, which requires the federal government to limit annual net borrowing to 0.35% of GDP.

Scholz called a vote of confidence which he then lost in December, paving the way for early national elections.

The CDU/CSU bloc had been projected to win the vote, polling at about 30% in the run-up to the election.

The CDU's popularity seems to have been boosted by its harder line on major policy issues such as migration, pledging to enforce stricter border controls and accelerate asylum proceedings.

It also wants to retain Germany's debt brake, cut corporate tax rates to a maximum of 25%, and "eliminate unnecessary red tape."

The CDU has also pledged continued support to Ukraine.

The vote comes at a pivotal time for Berlin, which faces an increasingly assertive Trump administration that has threatened tariffs on the European Union and looked to sideline Europe on negotiations with Russia over the Ukraine war.

Germany is a leading NATO member and a key provider of military aid to Ukraine — and it will play an important role in carving out Europe's future relations with the Trump administration.

Merz has pledged to bolster Germany's role on the world stage. In televised remarks on Sunday, the businessman outlined his view of the United States' posture toward Europe.

"My absolute priority will be to strengthen Europe as quickly as possible so that, step by step, we can really achieve independence from the USA," he said. "I never thought I would have to say something like this on a television program. But after last week's comments from Donald Trump, it's clear that this administration is largely indifferent to Europe's fate, or at least to this part of it."

Trump on Sunday congratulated the CDU/CSU bloc on his Truth Social platform — and then praised himself.

"Much like the USA, the people of Germany got tired of the no common sense agenda, especially on energy and immigration, that has prevailed for so many years," he said. "This is a great day for Germany, and for the United States of America under the leadership of a gentleman named Donald J. Trump."

The far-right AfD party came into Election Day in good spirits, buoyed by support from Musk and several strong showings in regional elections.

Musk — who appeared virtually at a party campaign event alongside AfD leader Alice Weidel in January — has praised the group's staunchly anti-immigration stance.

"Only the AfD can save Germany," Musk posted on X in December.

However, despite the AfD posting its best-ever result, it is unlikely to have a role in coalition talks.

• The ailing German economy is a key concern for voters in Sunday's elections.
• Germany's reliance on Russian gas, rising Chinese competition, and lack of spending have hit growth.
• The government easing its "debt brake" and boosting spending could revive its economy, analysts say.

Germany's federal election this Sunday will be the latest European political race to pit establishment parties against populist upstarts, most notably the Christian Democratic Union (CDU) and its coalition partners against the Alternative für Deutschland (AFD), which counts Elon Musk among its fans.

The beleaguered German economy is bound to be a central issue. Friedrich Merz, the CDU leader expected to become chancellor, has campaigned on cutting taxes, red tape, and energy costs to deliver an economic renaissance.

Here's how Germany got to this point, the problems plaguing its economy — and how they could be solved.

Rise and decline

Germany rebuilt its economy after World War II to become a manufacturing powerhouse, building and exporting goods such as industrial machinery and high-end cars.

It has just under 84 million people and ranks as the world's third-largest economy, with a GDP of $4.7 trillion. That's behind the US at $29.2 trillion and China at $18.3 trillion, according to International Monetary Fund estimates for 2024. Germany's economy is bigger than of Japan at $4.1 trillion, the United Kingdom at $3.6 trillion, and France at $3.2 trillion.

However, the German economy contracted in 2023 and 2024 while all those peers grew, with the exception of Japan last year, and is set to lag behind its peers once again in 2025. The IMF forecasts 0.3% growth in real GDP this year, compared to 2.7% for the US, 4.6% for China, 1.1% for Japan, 1.6% for the UK, and 0.8% for France.

A key driver of Germany's slowdown is weakness in its core economic activities. Industrial output has tanked more than 10% since 2019, and about 350,000 manufacturing jobs have been lost over the same period, government data shows.

Auto giant Volkswagen, chemicals behemoth BASF, and steel and industrial goods titan Thyssenkrupp have shed more than $50 billion or about a third of their market value in the past five years, as investors have soured on German industry.

Myriad signs of economic decline are "fueling the sense that Germany's best days are behind it," Stefan Koopman, a senior macro strategist at Rabobank, said in a report this week.

The far-right AfD "capitalizes on this anxiety, blending restorationist rhetoric with extremist elements" and "channels economic and migration concerns into a broader narrative of national decline," he added.

In December Elon Musk said on X that "only the AfD can save Germany" — and has since posted about the party dozens of times, as well as interviewing its leader, Alice Weidel, on his social media platform.

Eggs in Russia's basket

Germany's past energy policies are key to explaining its economic pains.

For decades, Europe's biggest economy relied on cheap Russian gas to manufacture everything from steel to chemicals for export. However, Russia's invasion of Ukraine in early 2022 caused energy prices to soar.

German officials also moved to punish Russia by reducing imports of its oil and depending on more expensive liquefied natural gas (LNG) and renewable sources instead, which eroded their country's appeal to some foreign businesses.

Moreover, authorities began shuttering the country's nuclear power plants in 2011 after the Fukushima disaster in Japan, closing the final three in 2023. That decision made Germany even more reliant on Russian energy, making the weaning process even more painful.

From customer to competitor

Until about 10 years ago, German manufacturers saw China as a huge export market.

But since then, China has become much more of a competitor to Germany as it has ramped up exports of rival products including steel, machinery, solar panels, and electric vehicles.

Cheaper production costs and looser regulations in China have also led numerous German businesses to shift at least part of their operations there.

Germany has topped the UN's ranking of industrial competitiveness for 20 consecutive years, but China has jumped from 33rd to second place in the rankings over the same period, underscoring the threat it poses.

Frugal to a fault

German authorities have underinvested in areas such as energy, education, security, and infrastructure for years, which has weighed on national productivity and competitiveness.

A key reason is a constitutional "debt brake," imposed after the 2008 financial crisis, which limits the federal government's deficit to 0.35% of GDP. For comparison, the US deficit exceeded 6% last year.

"This policy is a handbrake on Germany's ability to support its economy and incongruous with policy in the rest of the world," Alison Savas, the investment director of Antipodes Partners, said in an emailed note.

Relaxing its spending constraints would allow Germany to stimulate its economy, meet the "pressing need" to invest in its public infrastructure, and satisfy likely demands for greater defense spending from the Trump administration, she added.

Nobel-winning economist Paul Krugman wrote on Substack that Germany's "obsession" with controlling its debt has meant it's gone from "role model to cautionary tale — a warning about the costs of rigid thinking."

Diagnosing the problem

Germany faces other challenges, including a shrinking workforce and aging population, a shortage of skilled workers, a lack of affordable childcare, and frustrating levels of bureaucracy.

Its myriad issues are "symptoms of a deeper malaise: chronically weak domestic demand," Koopman said in his report. The German economy "parasitized on foreign demand to sustain its own existence," he continued, adding that it's been shored up for decades by other countries' consumption, investment, and spending on security and stability.

The remedy might be large-scale government spending on everything from energy and defense to education, infrastructure, and technology, Koopman added.

"Cutting taxes, cutting red tape and/or or cutting costs won't be enough to cut it," he said, warning that if Germany fails to ramp up its spending, it "risks becoming a 'has been' in the global economy."