The European Perspective
Germany’s Unpopular Necessity
Berlin is finally confronting a demographic time bomb. Influential government economic adviser Martin Werding has endorsed raising the statutory retirement age to 69, a phased increase to be completed by 2070 (ZDF). This move echoes the Economy Ministry’s call for fiscal realism as Germany’s pay-as-you-go pension system buckles under the weight of an aging population. While facing predictable political resistance from coalition partners like the SPD, the proposal signals a critical shift. We see this as a necessary, if politically painful, acknowledgment that promises funded by future generations are unsustainable without structural reform. The debate forces a choice between extending working lives and accepting either higher taxes or diminished benefits—a dilemma nearly every EU member state must eventually address.
Kyiv’s Deepening Reach
Ukraine’s drone war has entered a new, more audacious phase, moving beyond tactical strikes to strategic degradation of Russia’s war economy. Overnight, a massive drone assault reportedly struck deep inside Russia, igniting a major fire at the Novokuybyshevsk oil refinery in the Samara region and targeting the “Elektropribor” defense plant in Penza, a key producer of missile guidance components (ANSA). Simultaneously, multiple powerful explosions were reported in occupied Crimea, forcing the temporary closure of the strategic Kerch Bridge (ANSA). This escalation demonstrates a growing Ukrainian capacity to inflict meaningful economic and military pain far from the frontlines, challenging the Kremlin’s narrative of a contained conflict and disrupting its core logistics.
Catch the next Gist for the continent’s moving pieces.
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