Friedrich Merz, the next German chancellor, sealed a landmark deal on Friday to ease Germany’s strict borrowing limits, unlocking €500-billion that could redefine the country’s economic future. 

Markets sent the euro higher and German equities surged as investors bet on an economic boost from increased defence and infrastructure spending. 

"Germany is back," said Merz. “It is a clear message to our partners and friends, but also to our opponents, to the enemies of our freedom: we are capable of defending ourselves and we are now fully prepared to defend ourselves.” 

European stocks, euro rally as Germany strikes historic debt deal

 

 

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Kallas pitches plan to 'potentially' mobilise €40 billion in military aid for Ukraine

The plan, nicknamed "the Kallas initiative" in Brussels, seeks to fulfill Ukraine's priority needs to fight Russia's war of aggression, with special emphasis on artillery ammunition, air defence systems, missiles, drones and fighter jets.

Kallas is calling her new initiative a voluntary scheme to evade Hungary's negative vote. 

She gave a deadline of  30 April for pledges to be submitted.

Countries outside the EU  such as the United Kingdom and Norway are expected to contribute.

 Earlier this month Norway boosted its 2025 pledge to NOK 50 billion, equivalent to €8.19 billion.

Kallas pitches plan to 'potentially' mobilise €40 billion in military aid for Ukraine