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Germany Approves Fuel Tax Cut as EU Summit Seeks Breakthrough on Iran Disruptions

The EU says the Iran war is costing Europe about €500 million each day.

Overview

  • At an EU summit in Nicosia on Friday, Germany said it could ease some Iran sanctions if a deal ends the Strait of Hormuz blockade, as the Commission put the daily cost to Europe at about €500 million.
  • Parliament approved a temporary cut to fuel taxes that could trim pump prices by up to 17 cents for two months, and it cleared a tax‑free €1,000 payment that employers may grant to staff.
  • The federal government earlier this week halved its 2026 growth forecast to 0.5 percent and now projects inflation of 2.7 percent this year and 2.8 percent in 2027.
  • Berlin’s culture senator Sarah Wedl‑Wilson resigned after auditors found about €2.6 million in anti‑Semitism grants were awarded unlawfully, including €1.4 million to a single firm, drawing new scrutiny of Mayor Kai Wegner and alleged pressure from CDU lawmakers.
  • In Wismar Bay, the stranded humpback whale known as Timmy prompted state minister Till Backhaus to enter the water to assess the animal, while authorities reported threats against helpers as private and official rescue efforts continued.