Germany approves sugar tax as Latvia greenlights defense plant

The German governing coalition has reached a compromise regarding a proposed tax on sugar-sweetened beverages. The cabinet approved a bill featuring a two-tier tax system: drinks with at least five grams of sugar per 100ml will face a 26-cent tax, while those with at least eight grams per 100ml will be taxed at 32 cents. Small producers manufacturing less than one million liters annually will be exempt. Finance Minister Lars Klingbeils stated the goal is to increase federal revenue and encourage healthier product formulations. The tax is projected to generate 690 million euros in 2027 and 295 million euros in 2028. The plan faces opposition from CDU and CSU ministers, who argue it constitutes excessive state intervention.

In Latvia, the Cabinet of Ministers has approved the establishment of a new anti-tank mine production facility. The project aims to secure a full production and supply cycle for the National Armed Forces while also facilitating exports to enhance supply chain resilience. The facility is expected to begin operations in 2028. This initiative follows a memorandum of understanding between the State Defense Corporation and the German military industry firm Dynamit Nobel Defence. Defense Minister Raivis Melnis noted that the plant will strengthen national production capacity and reduce dependence on external suppliers.