
German labor agency flags €8bn+ 2026 deficit; UNSC bid fails on June 3
Germany's Federal Employment Agency reported on June 2 that its 2026 deficit will exceed €8 billion, more than double prior expectations, due to a weaker labor market and downgraded growth outlook. On June 3, Germany lost its bid for a non-permanent UN Security Council seat. Markets price in a likely ECB rate hike on June 11 amid energy-driven inflation pressures. The DAX showed modest daily moves around 24,700-24,800 on June 4.