Lavrov Calls Merz's Bundeswehr Plan 'Astonishing'

The day's most pointed external signal came from Moscow. Russian Foreign Minister Sergey Lavrov used a Foreign Ministry memorial event to call Chancellor Friedrich Merz's stated ambition to rebuild the Bundeswehr into Europe's strongest army "astonishing," telling Tass "I think there is no need to explain the meaning behind this phrase." Lavrov accused officials in Brussels of fostering "revanchist sentiments," claimed some European countries were preparing "another" attack on Russia and were "unabashedly calling for a repeat of Hitler's experience," and warned that any disruption of the May 8-9 Victory Day commemorations would draw a harsh response — language that landed as Berlin and other European capitals continue to expand defence procurement.

Domestic politics moved on two parallel Bundesrat votes that revealed the same coalition fault line: who pays. The chamber unexpectedly blocked the government's plan to allow employers to pay tax-free crisis-relief bonuses of up to €1,000 to employees, with states and municipalities objecting that the lost tax and social-contribution revenue would land on them rather than the federal budget. Hours later the same chamber approved the long-debated bill replacing the Riester-Rente with a new state-subsidised private pension scheme from 2027, including a state-run standard depot and the removal of the capital guarantee that previously required savers to be repaid at least their contributions; the change is intended to raise return potential for retirement savers while shifting more risk on to households.

The defence ministry said more than 90% of young men contacted under the new military service questionnaire have responded, an unusually high return for the early stage of the reformed wehrpflichtnah recruitment process and a politically useful number for a coalition under pressure to show the Bundeswehr expansion is feasible.

The trade picture, the day's other signature read on the German economy, came in stronger than expected. The Federal Statistical Office said exports rose 0.5% month-on-month and 1.9% year-on-year in March, beating expectations despite a sharp fall in shipments to the United States as new US tariffs and the Iran-war shock filtered through. Imports jumped 5.1% from February, narrowing the trade surplus to €14.3 billion. Commerzbank announced 3,000 job cuts as it tries to demonstrate a credible standalone strategy to the market and ward off the takeover bid from Italy's UniCredit, the most consequential ongoing M&A story in German banking.

Germany's external posture on the Gulf stays tied to the wider European line: the EU is split on providing naval escorts through the Strait of Hormuz, where Iran on Friday activated a Persian Gulf Strait Authority requiring shipping to obtain Iranian clearance and pay tolls, a regime France has called "unacceptable" and which Berlin has so far avoided endorsing or rejecting publicly.