Foreign News
German cabinet tries to solve ‘no-debt’ crisis after court outlaws budget
You know it’s a crisis when Germany’s Green vice chancellor cancels attending a climate summit.
Robert Habeck, who’s also economy minister, was supposed to be at the COP28 summit this week in Dubai. Instead, he is in Berlin, wrangling with coalition partners over an emergency agreement for next year’s budget. The crisis exploded on 15 November, when Germany’s constitutional court declared that the government’s budget was illegal for breaking German laws against taking on new debt.
That left a hole of tens of billions of euros.
Now the government has just a few days to come up with a solution, if it wants to pass the 2024 national budget before 1 January without emergency sittings.
On Wednesday (06) Germany’s cabinet meets for the last time this year. A revised budget would have to be put to parliament in next week’s final sessions before Christmas, so ministers should agree this week on how to balance next year’s budget, while sticking to the law.
This is not so much a debt crisis, as an anti-debt crisis. A German law, knowns as the “debt brake“, limits the amount of new borrowing the government is allowed to take on.
The law is enshrined in the constitution since Chancellor Angela Merkel introduced it in 2009 and is a matter of faith for conservatives, who brought the case to the courts.
So it was a coup for the conservative opposition when three weeks ago judges ruled that Olaf Scholz’s left-leaning government was breaking this law.
Balancing Germany’s budget is a feature of German politics, and is known as the schwarze Null, or black zero. It limits a government’s budget deficit to 0.35% of economic output.
Exceptions are allowed in national emergencies, such as the Covid pandemic. The government had planned to use emergency debt left over from the pandemic, to spend on Germany’s shift to green energy instead. Germany’s constitutional court has declared this wheeze illegal.
That leaves an estimated shortfall of €60bn (£51bn; $65bn) for 2023, and €17bn for 2024.
For the current year the government has decided to get round the “debt brake” by declaring 2023 an emergency year, because of the energy crisis sparked by Russia’s invasion of Ukraine, although this may also be challenged in the courts.
But so far, it’s not clear what Mr Scholz is proposing for 2024.
A much-anticipated parliamentary speech by the German chancellor last week did nothing to clarify that. His main message was: Trust me, we have a plan. He also repeated his mantra in German-accented English that “you’ll never walk alone”.

Behind the scenes the three coalition parties have spent the last few days in late-night meetings scrambling to reach an agreement. German commentators can only guess at who is negotiating what, based on which government building has the lights on late at night.
Broadly speaking the only solutions are tax rises, spending cuts or more debt. But these are three very different parties, with conflicting views over borrowing and spending.
The business-friendly small-state liberal FDP, which runs the finance ministry and holds the purse strings, is ideologically opposed to higher taxes and obsessed with keeping the “debt brake”.
Chancellor Scholz’s centre-left SPD meanwhile refuses to roll back a promised increase on social spending, and the Greens are determined to boost investment in Germany’s transition to renewables.
An uncomfortable coalition at the best of times, and these are not the best of times.
Until now the cracks have been papered over by throwing money at causes important for each party.
But all three are doing badly in the polls and have been punished in recent regional elections, making party members unruly and party leaders less open to compromise. The main reason that a compromise looks possible is that poor poll numbers mean there’s no appetite within the government for fresh elections.
Green ambitions to soften the “debt brake” will be difficult to agree in parliament because this needs a two-thirds majority.
Opposition conservatives smell blood, so are in no mood to compromise, and even liberal coalition partners may not agree. But Robert Habeck is rumoured to be planning to get round borrowing rules by arguing for an exemption for crucial future infrastructure.
Either way, the coalition may still find a way to spend money on what’s important to each party, just less of it.
(BBC)
Foreign News
US in closely-guarded talks to open new bases in Greenland
The US has been holding regular negotiations with Denmark to expand its military presence in Greenland, according to multiple officials familiar with the discussions, with talks between both sides progressing in recent months.
US officials are seeking to open three new bases in the south of the territory, a semi-autonomous part of Denmark, as they work to resolve a diplomatic crisis sparked by President Donald Trump when he threatened to seize Greenland by force.
Trump said in January that the US should “own” Greenland to prevent Russia or China from taking it. He said this could happen the “easy way ” or “the hard way”.
The White House confirmed the administration was engaged in high-level talks with Greenland and Denmark, but declined to comment on details of the negotiations. A White House official told the BBC the administration was very optimistic the talks were headed in the right direction.
Denmark has previously expressed a willingness to discuss additional American military bases in Greenland, and its foreign ministry confirmed talks with the US were taking place. “There is an ongoing diplomatic track with the United States. The Ministry of Foreign Affairs will not go into further detail at this time,” a spokesperson said.
US officials have floated an arrangement in which the three new military bases would be formally designated as US sovereign territory, according to one source with knowledge of the negotiations.
The bases would be in southern Greenland and primarily focus on surveillance of potential Russian and Chinese maritime activity in an area of the northern Atlantic between Greenland, Iceland and the United Kingdom known as the GIUK Gap, the officials who spoke to the BBC said.
The two sides have not formally agreed to anything yet and the final number of bases could change, the sources said. One of the new bases would likely be located in Narsarsuaq, on the site of a former US military base that housed a small airport.
Any other new military bases would likely also be located on sites in Greenland that have existing infrastructure such as airfields or ports, which could be upgraded at a lower cost than building new facilities, analysts said.
US officials have not raised the possibility during talks of somehow seizing control of Greenland, something that Denmark and Nato have publicly rejected.
Despite Trump’s threats, the countries have been actively working towards a deal in recent months.
The talks have been confined to a small working group of officials in Washington who have made headway negotiating outside of the spotlight while the administration has been consumed by the war in Iran.
General Gregory Guillot, the head of US Northern Command, gave a broad sense of the negotiations during congressional testimony in March. He said the US was seeking to open new bases, but the sources close to the talks described new details that paint a picture of regular high-level meetings that have progressed in recent months.
The delicate diplomatic effort is being led by Michael Needham, a senior state department official who has been tasked with crafting a deal that satisfies Trump while also respecting Denmark’s redlines around protecting its borders.
“Needham is running point” on Greenland, said a senior diplomat with knowledge of the talks. Behind the scenes, the person said, the administration is “approaching it very professionally”.
The teams have met at least five times since mid-January. Needham is usually accompanied by one or two US officials from the state department or National Security Council, several sources said. His counterparts in the room include Jesper Møller Sørensen, Denmark’s ambassador to the US, and Jacob Isbosethsen, the top Greenlandic diplomat in Washington.
Trump’s special envoy to Greenland, Republican Louisiana Governor Jeff Landry, hasn’t taken part in the negotiations and is largely absent from the diplomatic process, three sources said.
“He was supposed to be more of like a rah-rah cheerleader of the idea that we could just flex our muscles and take over Greenland as a security asset,” said a close Landry ally who asked not to be named. Landry “has never been to any of the actual talks.”
Landry’s office did not respond to a request for comment.
The US currently has one military base in Greenland, down from approximately 17 military facilities during the height of the Cold War. Pituffik Space Base is located in northwestern Greenland – it monitors missiles for NORAD but is not configured to conduct maritime surveillance.
Some current and former officials, as well as Arctic security experts, told the BBC that Washington could have advanced its interests in Greenland without threatening a Nato ally in such strong terms.
“Why threaten an ally with a military operation or invasion when what you want is something that could be negotiated quite easily?” said one former senior US defence official.
Others, however, praised the co-operation between the US and Denmark.
“Wherever the US and our allies leave a vacuum, that vacuum is often filled by China and Russia,” retired General Glen VanHerck, the head of Northern Command and North American Aerospace Defense Command (NORAD) from 2020 to 2024, told the BBC.
Behind closed doors, negotiators have sought to reach a compromise under the framework of an existing decades-old security agreement between the US and Denmark.
The 1951 pact grants the US a wide berth to expand its military operations in Greenland. The Danish government must approve any US military expansions in the territory, but Denmark has historically supported America’s military operations there and has never rejected a US request to expand its presence, Arctic security experts said.
Representatives of the Greenland government in Washington declined to comment. The US state department also declined to comment.
Trump expressed interest in the US gaining greater access to Greenland during his first term as president. But his renewed interest earlier this year set off a diplomatic crisis that highlighted tensions between Nato and the Trump administration.
[BBC]
Foreign News
Philippine VP Sara Duterte impeached for a second time
The Philippine House of Representatives has voted to impeach Vice-President Sara Duterte for a second time, threatening her plan to run for president in 2028.
Monday’s vote moves the impeachment process to the Senate for trial, where if convicted, the daughter of former President Rodrigo Duterte will be disqualified from holding public office.
The 47-year-old is leading early surveys to replace her ally-turned-bitter foe, President Ferdinand Marcos Jr.
The case against the vice-president stemmed from her alleged misuse of public funds and public threats against Marcos, his wife and his cousin, the former House speaker.
Duterte was impeached on the same grounds in 2025, but the Supreme Court blocked it on a technicality before the
senate trial could start.
The case was revived this year. Last week, a House committee that looked into the evidence against the vice-president ruled that there was sufficient grounds to impeach her.
Duterte described the case as “nothing more than a scrap of paper” in a formal written response. She refused to appear in the committee hearings which she said had been politically motivated.
After the impeachment vote on Monday, Duterte’s defence counsel said in a statement that “the burden now rests on the accusers to substantiate their claims” according to the law.
Monday night’s impeachment vote served as a barometer of Marcos’ support in the House. 257 of the 290 lawmakers in attendance voted to impeach Duterte, more than the one-thirds required to advance the case to trial.
But unlike in the House, a conviction in the Senate is uncertain, if a trial does start and runs its course.
In Philippine politics that is dominated by patronage and dynastic alliances, House members, who are elected per legislative district are friendlier to the incumbent president, compared to senators.
The country’s 24 senators are elected on the national level and the Senate is a traditional springboard for those hoping to run for president or vice-president in the future.
In the 2025 mid-term vote, where half of the Senate was elected, candidates allied with Duterte fared better than those who ran under Marcos’ coalition.
But the outcome of an impeachment vote will be difficult to predict under the country’s multi-party system with shifting alliances.

Duterte announced her intention to run for president in February, much earlier than expected. Marcos is limited by the constitution to a single six-year term.
She holds a 17-point lead over her nearest rival based on a survey in March by Manila pollster WR Numero.
In the 2022 elections, Duterte was the survey frontrunner to succeed her father, but she formed an alliance with Marcos and ran for vice-president instead to consolidate their support bases and fend off a reformist wave. The pair won by a landslide.
But the alliance soon unravelled as they pursued divergent political agendas.
Marcos’ allies in the House, led by cousin, then speaker Martin Romualdez, investigated allegations of fund misuse in Duterte’s office.
At the height of public scrutiny, Duterte hosted a late night online press conference, where she said she told one person that “if I get killed, go kill BBM [President Marcos], [First Lady] Liza Araneta, and [House Speaker] Martin Romualdez”.
Then in March last year, Marcos allowed theInternational Criminal Court to arrest Rodrigo Duterte and detain him at The Hague, where he now awaits trial for crimes against humanity over the hundreds who died in his so-called war on drugs.
[BBC]
Foreign News
Car bomb attack and ambush in northwest Pakistan kill at least 21 police
A car bombing at a police post, followed by an intense firefight, has killed at least 21 officers in northwestern Pakistan, according to police and security sources.
An alliance of armed groups known as the Ittehad-ul-Mujahideen Pakistan has claimed responsibility for the attack in Bannu, a district in Khyber Pakhtunkhwa province bordering Afghanistan, late on Saturday.
[Aljazeera]
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