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German Vice Chancellor and Finance Minister Lars Klingbeil has called on the European Union to take firm action if ongoing trade talks with the United States fail. His remarks, published Sunday in Sueddeutsche Zeitung, follow US President Donald Trump’s threat to impose a 30 percent tariff on EU imports starting August 1, according to Xinhua.

Klingbeil warned that Germany would not remain passive if negotiations break down, stating that preparations for countermeasures are already underway. He stressed the need for a fair trade agreement, saying, “Trump’s tariffs produce only losers,” and urged an end to escalating tensions.

He also noted that Germany will accelerate efforts to diversify its global trade partnerships. The US is currently Germany’s largest export market, with exports totaling €161bn in 2024 and a trade surplus of nearly €70bn, Xinhua reported.

Poland has reintroduced temporary border controls with Germany and Lithuania due to a rise in undocumented migrants, mainly from Venezuela and Colombia.

Polish Prime Minister Donald Tusk said the move aims to redirect migration routes bypassing the Belarusian border and entering via Latvia and Lithuania, BBC reported.

The decision comes as several EU countries, including Germany, have tightened border checks. Warsaw argues Germany’s tougher stance has shifted the burden onto Poland.

Recent violent incidents involving foreign nationals have heightened public tension, prompting far-right groups to patrol borders. Rights groups warn such actions fuel xenophobia and call for fact-based migration policy, according to BBC.

The International Atomic Energy Agency (IAEA), the United Nations' nuclear watchdog, has formally declared Iran in breach of its nuclear non-proliferation guidelines for the first time in 20 years.

In a resolution supported by 19 of the IAEA's 35 board members, including the United States, United Kingdom, France, and Germany, the agency criticized Iran's refusal to explain undeclared nuclear material and its stockpile of uranium enriched near weapons-grade levels, UN News reported.

Iran rejected the resolution as politically driven, announcing plans to construct a new enrichment facility. It argues that its nuclear program is harmless.

The move follows a 2018 decision by US President Donald Trump to withdraw from the 2015 nuclear deal, after which Iran began scaling back its compliance, according to UN News.

The EU has reaffirmed its commitment to a fair trade deal with the US, following President Donald Trump’s threat to impose a 50 percent tariff on all EU imports starting June 1.

EU Trade Commissioner Maros Sefcovic said the bloc seeks a deal based on “mutual respect, not threats,” after talks with US officials. Trump criticized stalled negotiations and warned tariffs would not apply to US-made goods, hinting a major EU investment could delay action.

European leaders urged de-escalation and warned of mutual economic harm. Germany, France, Ireland, and the Netherlands endorsed ongoing discussions and a clear EU stance.

Trump, citing trade imbalances, has threatened a 25 percent tax on iPhones not manufactured in the United States. Markets fell in response, with US and EU indexes closing lower.

Germany’s new Chancellor, Friedrich Merz, is signaling a tougher stance on Russia, backing stronger EU sanctions including bans on gas and uranium imports and the use of frozen Russian state assets.

Thorsten Frei, Merz’s chief of staff, said Europe must move beyond its “comfort zone” to increase pressure on Moscow. The EU is preparing a new round of sanctions following recent measures targeting Russia’s oil “shadow fleet” and financial networks, accoding to Reuters.

Merz has also supported the potential confiscation of frozen Russian assets, if legally feasible.

German Defence Minister Boris Pistorius accused Russian President Vladimir Putin of delaying peace efforts in Ukraine and called for stricter EU sanctions, especially targeting Russian energy exports.

Pistorius said Russia’s continued attacks show it is not serious about negotiations and is using diplomacy to buy time, Reuters reported.

Following Putin’s recent call with US President Donald Trump, EU leaders agreed to increase pressure on Moscow if it refuses an unconditional ceasefire.

French Foreign Minister Jean-Noel Barrot called Putin's stance hypocritical, while EU Foreign Policy Chief Kaja Kallas urged the United States to join the EU in taking greater action. She pointed out that Ukraine had already accepted a cease-fire agreement over 60 days ago, which Russia refused, according to Reuters.

German prosecutors stated on Wednesday that three Ukrainian nationals had been arrested in connection with a suspected sabotage plot aimed against Russian-linked transit networks. The arrests took place in Cologne and Konstanz, Germany, as well as in the canton of Thurgau, Switzerland.

The suspects are accused of planning arson and explosive assaults in Germany on behalf of others suspected of working for Russian state officials. Authorities also claim the organization intended to send explosive devices from Germany to Ukraine, designed to detonate during transit, as reported by Firstpost.

The case is being investigated as a foreign intelligence operation designed to disrupt German infrastructure. The suspect apprehended in Switzerland is expected to be extradited to Germany for additional legal proceedings.

UK Foreign Secretary David Lammy will meet with counterparts from France, Germany, Italy, Spain, Poland, and the EU on Monday to discuss continued support for Ukraine and enhanced regional defence cooperation, according to Reuters.

The discussions take place before Prime Minister Keir Starmer meets with EU leaders on May 19 to discuss improving trade relations after Brexit and securing a new defense agreement.

Lammy is expected to announce new sanctions targeting those aiding Russia’s invasion of Ukraine. The move follows a joint visit to Kyiv by leaders of Britain, France, Germany, and Poland to support Ukraine’s call for a 30-day ceasefire, backed by US President Donald Trump, Reuters reported.

Vladimir Putin, the president of Russia, has subsequently suggested holding direct peace negotiations with Ukraine.

Friedrich Merz has been elected Germany’s chancellor after securing 325 votes in a second round of parliamentary voting, following an unprecedented initial defeat, BBC reported.

Merz, 69, leads the CDU/CSU alliance, which gained 28.5 percent in the February election. The conservatives formed a partnership with the SPD, which gained 16.4 percent when Olaf Scholz's cabinet collapsed.

Merz received only 310 votes in the first round, despite having 328 seats in total. He was formally appointed by President Frank-Walter Steinmeier and will take the oath in the Reichstag.

The new coalition claims tax cuts, lower energy prices, higher defense expenditure, and continuing support for Ukraine, all while addressing the emergence of the far right and strained US-Ukraine economic relations, according to BBC.

Friedrich Merz, the head of the Christian Democratic Union (CDU), fell six votes short of the 316 votes needed to win a parliamentary majority and become Germany's next chancellor on Tuesday, BBC reported.

Merz earned only 310 votes in a secret ballot, even though the Social Democrats held 328 seats and he was part of the CDU-Christian Social Union (CSU) combination. This is the first time a candidate for chancellor has lost on the first vote since World War II. Germany's DAX stock index dropped 1.8% as a result.

Olaf Scholz, the departing chancellor, is still serving in a caretaker capacity while the parties negotiate the next course of action. In order to guarantee leadership stability, CDU officials have demanded a speedy second vote, as stated by BBC.

Germany’s economy grew by 0.2 percent in the first quarter of the year, according to preliminary data released Wednesday by the federal statistics office. The slight expansion, fueled by consumer spending and investment, is consistent with market expectations and has helped the economy avoid a technical recession following a 0.2 percent contraction in the previous quarter, Reuters reported.

Despite this positive uptick, Germany is the only G7 country that has not experienced yearly economic growth in the last two years. Analysts warn that President Donald Trump's newly announced US tariffs might have a substantial influence on Germany's export-driven economy, potentially paving the way for a third consecutive year of stagnation – an unprecedented scenario in the country's postwar history.

Ukraine's President Volodymyr Zelensky has invited Donald Trump to visit his country ahead of any deal with Russia to end the war.

"Please, before any kind of decisions, any kind of forms of negotiations, come to see people, civilians, warriors, hospitals, churches, children destroyed or dead," Zelensky stated during an interview with CBS's 60 Minutes program, BBC reported.

The interview was conducted before to the deadly Russian missile strike on the Ukrainian city of Sumy on Sunday, which left 117 people injured and 34 dead, including two children.

Trump called the incident "horrible," while Germany's chancellor-in-waiting, Friedrich Merz, charged Russia of war crimes, according to BBC.

There was no quick formal response from Russia, whose forces over the border are thought to be preparing for a major onslaught.

Thomas Prinz, who has served as the German Ambassador to Nepal since September 2021, is nearing the end of his tenure. He embarked on his diplomatic career in 1998 by participating in EU election observation missions. Over the years, he has held various roles within the German Federal Foreign Office and served in German embassies across several countries, with a particular focus on Asia.

Prinz emphasizes that Germany and Nepal will continue to strengthen their partnership, rooted in shared values such as democracy, individual freedom and a commitment to building a just and equitable society that prioritizes environmental conservation and climate action. The two nations have fostered a robust relationship over the past 67 years since the establishment of diplomatic ties in 1958. Development cooperation began in 1961, and Germany has since become one of Nepal’s key trading partners. In this context, Kamal Dev Bhattarai and Pratik Ghimire of ApEx sat down with Ambassador Prinz for an interview. Excerpts: 

Can you share your overall impression of Nepal?

Nepal is a great country with wonderful people—very welcoming, very open and very friendly. It has always been a great pleasure for me to work with Nepal and Nepali counterparts. Nepal has such a diverse culture, with many different ethnic groups, including the Newari culture, as well as indigenous and tribal cultures in the valley and up in the mountains. It’s a fantastic place.

What is the one thing you will miss most about Nepal?

It’s indeed the friendliness of the people. Recently, I had a guest from Germany here, and she has traveled to various countries in this region. She said it’s so nice coming to Nepal—such a friendly and welcoming culture. People are always smiling on the streets, in taxis and at the airport. That is really something that touches me, and I will always keep that in my mind and remember it.

How do you see the current state of Nepal-Germany relations?

We have a very friendly bilateral relationship. We do not have any problem whatsoever. We are very good partners in many international matters, and we coordinate well. The way we conduct our development cooperation in Nepal is very much appreciated by the Nepali government. So, all in all, I would say we have extremely friendly relations. And that’s one reason I always feel pleasure working here in Nepal.

Do you think Nepal-Germany relations could have expanded further, considering past political engagements?

There is a problem on both sides. For Nepali politicians and decision-makers, Europe and Germany are far away. And the same is true for the German side. Nepal is, hence, not always in focus. It is up to us, the diplomats, to bring these countries into the focus of our decision-makers and try to engage top-level politicians in personal meetings. It happened last year when the President of Nepal Ramchandra Paudel made an official visit to Berlin and was received by the Federal President of the Federal Republic of Germany. But of course, we would like to see more of these developments. As I said, the problem is on both sides. During Covid, there was no travel, then we had Russia attacking Ukraine, Brexit and all these issues were consuming politicians in Europe. So, in a way, it's understandable that Nepal was not in focus.  

Another problem that hinders progress is the high fluctuation of political decision-makers in Nepal. Since I have been in Nepal, I have met three Prime Ministers, six Foreign Ministers and five Home Ministers. This rapid turnover of political personnel makes it difficult to build long-term relationships. I am sure that if Nepal had more stability, it would also be easier to establish more personal contacts.

Is there a one-way dynamic in Nepal-Germany relations, where Germany has been providing assistance for seven decades while Nepal has not engaged in proper negotiations?

Indeed, I sometimes discuss with my European colleagues how we could make decision-makers in Nepal more aware of the opportunities they could find for closer cooperation with Europe. We do not have this strategic view in the region, like, for instance, the direct neighbors have or maybe also outside big powers have. We are more interested in long-term business-making, civil contacts and so on. That is why I think they could take a closer look at Europe in some areas. 

We offer some business opportunities that others don’t. Even if others do offer the same, why not go with the Europeans? When you choose European partners, you are not in this, let’s say, political competition between northern and southern neighbors and so on. Therefore, sometimes I think Nepali decision-makers could take a closer look at what Europeans have to offer.

What is Germany’s Indo-Pacific outlook, and how does it view South Asia? How is Germany engaging with the region, and where does Nepal stand?

We have an Indo-Pacific guideline—or strategy, you could say—which was adopted by the German government about five years ago, and it clearly states that we want to strengthen our relations with democratic states and governments in the region. And Nepal is definitely one of those countries. So basically, the decision is to have a stronger footprint in the area and to closely cooperate with democratic countries. The fact that we revoked our decision to end our bilateral development cooperation is part of those guidelines. The fact that we are still very active here with our development cooperation is based on our commitment to strengthening democratic countries in this region.  

Regarding Germany’s outlook on South Asia, I have to say it is very much dominated by Germany-India bilateral relations, as India is the dominant country in the region. We have very strong trade relations with India, with cooperation in universities, research and so on. That largely shapes the perspective of German decision-makers, and I have always been busy trying to convince politicians, who visit South Asia and go to India to also look across the border and see what is happening in Nepal. When we have trade fairs in India, I try to convince our Chamber of Commerce in Mumbai to encourage German participants to take a look at Nepal. That will take some time, but I am quite optimistic that with India's growth, we will see some positive effects in Nepal too.

The Nepali government claims that the current environment is favorable for investment. How do you view Nepal’s overall investment climate from a German perspective?

The investment climate for foreign investment in Nepal is actually not very good or welcoming. We see minor improvements, and there is willingness on the part of the government to improve things, but we have to see how it plays out on the ground. The announcements we have heard so far are okay, but we need to see how they translate into action. How difficult it is to get a work permit or transfer money—these factors hinder foreign investment here.  

The fact that when you open a business here, you are always a minor partner in a joint venture. This is very difficult for European companies because they have their own compliance practices, and when they can’t guarantee these compliance practices, it becomes very difficult for them to invest. So, all in all, I would not consider Nepal a foreign investment-friendly country. I hope that will change, and I trust the government’s intention to improve the situation, but to convince investors that real change is happening, we need to see concrete improvements on the ground.

Germany is experiencing a labor shortage and has eased visa regulations to attract workers from countries like Nepal. What are the latest developments on that front?

We have changed our immigration laws recently and have become much more open to receiving foreign labor. Last year, we had a change in immigration law, and we are now openly welcoming skilled labor from abroad. It has become very easy to immigrate to Germany if the candidate brings any kind of skills with them. If you have a master's degree from Nepal or have already been studying in Germany and obtained a degree from a German university—whether in engineering, IT or any other field—you can easily apply for a job in Germany. If you find a job, we will issue the visa. We even accept people who come to Germany without having a job, as long as they have a degree and want to search for a job in Germany. In such cases, we can also issue a visa.  

We also have one way to migrate to Germany for unskilled labor, which is through the Nepal Secretariat for Skills and Training, an institute in Kathmandu. Through this program, we offer a one-year German language training course. Once they pass the course, they can go to Germany for vocational training, which is paid from the very first day. They are treated equally to Germans who undergo vocational training in Germany, receiving the same health insurance and social security benefits. Currently, we have about 130 Nepalis in this program already in Germany, and about 500 in the preparatory course in Kathmandu.  

So, besides skilled work, this is another way to go to Germany. When they complete this three-year vocational training, they graduate with a diploma and can then stay in Germany and work. These are the immigration pathways we have opened, and as we can see, many Nepalis are already following them. We are optimistic that we can increase the number over time.

Have you identified any potential areas where Nepal and Germany can expand further?

There are some traditional areas of cooperation, and we should continue working on them in the future. I am happy that we have now reached pre-covid numbers of German tourists coming to Nepal, and in this area, we will see further development. I could imagine, for instance, adding other groups of tourists, such as bicycle tourists or female trekking groups—these are areas where I see potential. Cultural groups also present opportunities.  

But beyond these traditional areas of cooperation, I see huge potential for Nepal in the field of IT services. Nepal already has a very vibrant IT sector, and I can only encourage decision-makers to put more effort into further developing it. There is tremendous demand for IT services, including programming, AI and algorithms essential for modern society. We have successful programmers here in Nepal, and those in Europe who are already working with Nepali programmers have had very positive experiences. So, I hope that in the future, this cooperation will create even more opportunities.

How do you see Nepal’s recent engagement with China?

China is one of Nepal’s two major partners, and whoever is in government in Nepal must engage with both. That will never be easy. Nepal has a major partner to the north and another to the south, and geography cannot be changed. For every Nepali politician, decision-maker and foreign minister, it is absolutely necessary to maintain good relations with both. The key is to balance these relationships—to cooperate with both without losing the ability to make independent decisions. It is crucial for Nepal to remain in a position where it cannot be blackmailed or forced into actions against its interests by either side.  

My recommendation would always be to follow the policies that various governments have adopted to avoid falling into a debt trap from any side. Nepal is a sovereign country and can engage with both neighbors. Several governments have demonstrated the ability to find an equilibrium and manage these relationships effectively. Moreover, both of Nepal’s neighbors have an interest in the region’s smooth development—nobody wants instability. Nepali politicians have experience in managing these dynamics and understand how to deal with two powerful neighbors.

What are your suggestions to our politicians on Nepal’s development?

I would say Nepal should focus on its strengths. Tourism, for instance, could be an area to build on. Currently, foreign tourists spend around $20 per day in Nepal, and efforts should be made to increase this figure, positioning Nepal as a more high-end destination. Another area where Nepal is strong is in IT services. The government should do whatever it can to support institutions that train IT engineers and make it easier for the sector to develop. It should also facilitate foreign companies to set up shop in Nepal to take advantage of the potential offered by these young engineers. Those would be my recommendations.

The Government of the Federal Republic of Germany has pledged an assistance of 100,000 Euros to support communities impacted by the devastating floods of September 2024 in Nepal.

 Ambassador Dr. Thomas Prinz, the German Envoy to Nepal, on behalf of the Government of the Federal Republic of Germany, signed the grant agreement with One Heart Worldwide for a project titled “Emergency Response and Recovery Plan for Continuation of Maternal and NewbornHealth (MNH) Services in Flood-Affected Areas of Sarlahi, Rautahat and Kavrepalanchowk Districts,” that aims to provide vital healthcare services in the affected regions. Surya Bhatta, Co-CEO of One Heart Worldwide signed the agreement on behalf of the organization, reads a statement issued by the Embassy of Germany.

One Heart Worldwide is an organization dedicated to improving access to healthcare for mothers and newborns in remote areas of Nepal for over a decade. Through this project, One Heart Worldwide will focus on maintaining access to basic health services, ensuring water and sanitation facilities, and delivering emergency supplies to pregnant women, new mothers, and their families in the three most heavily affected districts from the recent floods and fire: Sarlahi, Rautahat, and Kavrepalanchowk.

Rautahat, one of Nepal’s poorest districts, is home to a significant Muslim and Dalit population, who have been disproportionately affected by recurring disasters. Frequent floods, fires, and cold waves have made survival increasingly difficult for vulnerable communities. The recent fires have affected 25 households, while 53 people are rendered homeless. Similarly, Sarlahi and Kavrepalanchowk were heavily affected during the recent floods caused by the incessant rains.

The project will provide affected individuals with Dignity Kits, Winterization Materials, Hygiene Kits, and Kitchen Utensils, as well as Health Facility Medical Equipment and Supplies, and establish WASH (Water, Sanitation, and Hygiene) stations at healthcare facilities. The cold season is expected to have a particularly severe impact on pregnant women, new mothers, and young children.

“This is an important project for districts heavily affected by the recent disasters. With the harsh winter, we are relieved thatthe most vulnerable populations are receiving the support they urgently need,” said Ambassador Dr. Thomas Prinz, according to the statement.

“We are pleased to have signed this agreement with the German Embassy. This grant will provide critical assistance to mothers and newborns in these vulnerable communities, ultimately supporting the Government of Nepal’s ongoing efforts,” shared Mr. Surya Bhatta.

The project is slated to complete by June 2025.

The German government is to provide 100,000 Euros (EUR) to the drinking water project constructed at Dhulikhel Municipality in Kavrepalanchowk.  The drinking water project was damaged by floods and landslides that occurred in the last week of September.

The municipality had in mid-October proposed German Ambassador to Nepal, Dr Thomas Prinz for the reconstruction of the damaged project.

Mayor Ashok Byanju on the behalf of the municipality and Tirtha Sinha on the behalf of the German Agency for International Cooperation signed the memorandum of understanding for the same. 

The German Embassy in Nepal through GIZ was ready to provide Rs 14.2 million support for the reconstruction of the drinking water project.

As per the agreement, the financial assistance would be provided to Dhulikhel Drinking Water and Sanitation Consumers' Committee within a few days, said the mayor. 

Locals of ward no 3, 4, 5, 6 and 8 and government offices at the district headquarters have still been facing problems with drinking water.

Meanwhile, drinking water is being supplied in the municipality after partial reconstruction of the project.

Committee Chairperson Krishna Bhusan Shrestha said Rs 1.97 million has been spent to carry out repair and maintenance of the project so far.

Around Rs 35 million has been estimated for the complete reconstruction of the three-decade old drinking water project.

The German government has decided to extend assistance for the reconstruction of Dhulikhel Drinking Water Project which was damaged by the disaster two months back.

The German Embassy in Nepal is offering Rs 14.5 million via its aid agency, GIZ, to reconstruct the damaged water supply system, according to Mayor Ashok Byanju.

During a recent meeting with Dhulikhel Municipality Mayor Byanju, German Ambassador to Nepal Dr Thomas Prinz had vowed to provide monetary support to the municipality so that it would be able to reconstruct the damaged drinking water project.

The amount would be released immediately after a bilateral agreement on assistance, according to Byanju.

However, the municipality has estimated that it would cost over Rs 35 million for the reconstruction of the drinking water project.

With the damages of essential service, the people from ward no 3, 4, 5, 6 and 8 in the municipality have bearing the brunt.