The German Minutes - Dec 01, 2025
🇩🇪 Germany Political & Government News Digest – Dec 01, 2025
Merz Expects Pension Vote on Friday
Chancellor Friedrich Merz expects that the Bundestag will vote this week on the controversial pension package. The conservative youth wing and parts of the CDU are pushing back hard against the planned pension package, arguing it is fiscally unsustainable and unfair to younger generations. Party figures like Johannes Winkel and others are using the internal dispute to increase pressure on coalition leaders ahead of key votes in Bundestag committees
Impact: The outcome will shape the coalition’s credibility in social policy and Merz’s leadership strength. —> Sueddeutsche
Western Allies Discuss Peace Plan with Zelensky
Representatives of Western countries are consulting with Ukrainian President Volodymyr Zelensky on the next steps for a potential peace plan for the war in Ukraine. The talks focus on coordinating European positions and handling Russia’s parallel contacts with the USA.
Impact: Indicates whether Europe remains united on Ukraine and what approach it will take toward negotiations with Russia. —> Sueddeutsche
German industry crisis deepens
New Handelsblatt data show that revenues of tens of thousands of German industrial firms have fallen noticeably in recent quarters, with especially steep drops in the automotive sector and other major export industries. Despite solid profits at some large DAX groups, shrinking domestic sales and ongoing cost pressures are leading to job cuts and underused capacity across the industrial base.​
Impact: The worsening industrial slump threatens Germany’s status as a manufacturing powerhouse and increases pressure on policymakers for faster relief on energy, taxes, and regulation.​ —> Handelsblatt
Will the German Economy Finally Pick Up in 2026?
After three years of crisis marked by weak growth, gloomy business sentiment, and rising insolvencies, economists discuss whether 2026 might bring a slight upturn of about 1 percent. Despite forecasts of improvement, institutes and economic experts warn of ongoing risks, including high inflation, eroding purchasing power, and job losses in key sectors.
Impact: This determines expectations for investment, jobs, and policy in 2026—between cautious hope and ongoing stagnation. —> Sueddeutsche