Germany rethinks debt brake. Center-right and center-left parties backed a proposal to disregard the country’s debt limit for defense spending and create a more than $530 billion infrastructure fund. The proposal would alter limits imposed after the 2008 global financial crisis and will require two-thirds of congressional approval. Chancellor-to-be Friedrich Merz’s party had opposed changing the debt brake before Germany’s February 23 election, but Merz said yesterday that the country now requires a “whatever it takes” mentality on defense.
Reported freeze on U.S.-Ukraine intel sharing. Washington halted its intelligence sharing with Kyiv, four unnamed officials told the Financial Times. Ukraine’s military has relied on that assistance to target Russian forces. An unnamed official in Kyiv this morning told Bloomberg that Ukrainian authorities are still receiving U.S. intelligence, while CIA Director John Ratcliffe told Fox Business that the United States had paused both weapons shipments and intelligence support to Ukraine. Ratcliffe voiced hope that the pause would be lifted following Zelenskyy’s message to Trump.
U.S., Israel reject Arab plan for Gaza. Arab leaders yesterday endorsed a $53 billion reconstruction plan for postwar Gaza that would avoid displacing Palestinians from the territory. It would sideline Hamas and empower an initial committee of bureaucrats to run Gaza before turning it over to a reformed Palestinian Authority (PA). The proposal did not directly answer the questions of how or whether to disarm Hamas. A U.S. National Security Council spokesperson said the plan “does not address the reality that Gaza is currently uninhabitable,” while Israel accused the PA of “corruption” and “support for terrorism.”
Panama port sale. Hong Kong-based firm CK Hutchison Holdings agreed to sell its majority share in two Panama ports to U.S. asset manager BlackRock. Yesterday’s announcement came after Trump falsely claimed that China was operating the Panama Canal. Panamanian President José Raúl Mulino played down the potential ramifications of the deal, calling it “a global transaction, between private companies, motivated by mutual interests.”
Beijing’s growth target. Chinese Premier Li Qiang announced an economic growth goal of “around 5 percent” for 2025, maintaining a target from the last two years despite trade tensions with the United States. He said officials would aim for a budget deficit of 4 percent of GDP, the highest number in recent decades; a new government report said China would “adopt a more proactive fiscal policy” to stimulate the economy. Beijing also announced a 7.2 percent increase in defense spending, consistent with average increases over the past decade.
Russia’s offer to mediate on Iran. Russia offered to broker talks between the United States and Iran regarding Iran’s nuclear program and support for proxy forces in the Middle East, unnamed sources told Bloomberg. A Kremlin spokesperson said Moscow is ready to help Tehran and Washington resolve their differences. Trump has both imposed new sanctions on Iran and said he is interested in a nuclear deal.
Chevron’s deadline in Venezuela. U.S. officials yesterday gave oil and gas giant Chevron one month to stop operations in Venezuela as part of a sanctions snapback. The timeline is shorter than the common six-month wind-down period and one that analysts said will be hard to execute. Trump said that Venezuela has not made enough progress on migrant returns or electoral reforms.
Russia-Myanmar ties. Myanmar’s junta chief visited Moscow yesterday for the fourth time since the military took power in a 2021 coup. During his trip, the two countries reaffirmed their economic and security cooperation; Russia is a critical arms supplier for the junta’s fight against insurgents. They also agreed to jointly produce a small-scale nuclear power plant in Myanmar. The World Bank has projected that Myanmar’s economy shrank 1 percent over the past year.
