Germany

The head of the German Institute for Economic Research (DIW) has said he expects Russia’s invasion of Ukraine to continue to hamper growth and inflate costs in the German economy.

German government interventions and a mild European winter have cushioned the blow of the war and its consequences, but Europe’s largest economy is likely heading for a recession.

DIW President Marcel Fratzscher said the war and its effect on driving up energy prices have already cost the German economy about €100 billion ($107 billion), or about 2.5% of gross domestic product (GDP).

A few days before Christmas, a convoy of security vehicles invaded a quiet corner of Weilheim, a quaint Bavarian town of pastel squares and fastidiously kept cobblestone streets. Their target seemed as unassuming as the setting: a local children’s soccer coach.

Before then, nothing had stood out about the man, fellow coaches recalled. He was not short, but not tall — friendly, yet never wanting to discuss anything but soccer. Grasping for words, most landed on the same choice: “unremarkable.”

That changed when they learned he had been arrested on charges of treason and spying for Russia in one of the gravest espionage scandals in recent German history.

New polls show that attitudes to the conflict may be shifting

As the Russian invasion of Ukraine approaches its first anniversary later this month, it remains unclear how this conflict is supposed to end. Nowhere is this more evident than in Germany’s foreign policy, where Olaf Scholz is proving to be something of an enigma. While it is true that Germany has not been Kyiv’s loudest cheerleader, the reality is that military equipment has been delivered continuously. Only the United Kingdom and the United States have provided more provisions to the Ukrainian armed forces.

German news magazine Der Spiegel and others published stories on Tuesday evening saying that the government in Berlin had decided to send Leopard 2 tanks to Ukraine.

This follows a long-running debate on the issue among NATO allies, and comes after Poland formally asked Berlin for permission to send some of its Leopard 2 tanks to Ukraine earlier on Tuesday.

Spiegel magazine reported that the decision would involve sending at least one company of Leopard 2A6 tanks. The 2A6 version is the second-newest available and the most recent available in larger numbers.

Spiegel attributed its information to government sources but did not identify them. Broadcaster ntv issued a similar report, and the dpa news agency later said its “coalition sources” had said the same. But the government did not immediately comment publicly on the reports.