The German Minutes - December 5, 2025
🇩🇪 Germany Political & Government News Digest – Dec 05, 2025
Today’s Bundestag agenda and fresh economic data make this a big day for residents in Germany, with decisions on pensions, military service, and the overall tax burden shaping the landscape for work, housing, and long‑term planning.
New military service law: What changes for young people in Germany?
The new Wehrdienst law, pushed by the black‑red coalition, introduces a “service check” for all 18‑year‑olds from 2026 onward without fully reactivating classic conscription. All men will be required to fill out a questionnaire about their fitness and willingness to serve; women will receive it but are exempt from answering, and actual service initially remains voluntary. The Bundeswehr aims to grow active forces from about 185,000 to around 260,000 soldiers by 2035, with higher pay for volunteers who complete at least six months of service.
Impact: For internationals with German citizenship or planning to naturalize, military service and related obligations may become a concrete part of life plans, especially for male youths. Families with teenage sons should follow details closely when considering schooling, training, and career timing, as later steps toward partial conscription are explicitly left open in the law.
Final fight over pension package in Bundestag
Today the Bundestag votes on the controversial pension package that includes a “pension guarantee line” keeping the statutory pension level at 48 percent of average earnings at least until 2031. Within Chancellor Friedrich Merz’s CDU/CSU bloc, the “Young Group” of younger MPs has openly criticized the long‑term budget burdens, threatening the government’s narrow majority and turning the vote into a key test of coalition stability. The package also bundles measures like extended “mothers’ pensions” and incentives for longer working lives, while a new commission must propose deeper reforms within six months.
Impact: For foreign professionals paying into the German system, the package directly affects expectations for future statutory pensions and long‑term tax and contribution burdens. The political struggle signals that further reforms are highly likely, so internationals should not rely solely on the state pension and should review private retirement planning in Germany.
Study: Germany’s tax and contribution burden climbs to record high
New calculations from the German Economic Institute (IW) show that the total “Abgabenquote” – the share of economic output taken by taxes and social contributions – is set to reach a historic peak. Rising defence spending, infrastructure investment, and demographic pressures on pensions, health insurance, and unemployment insurance drive this increase, even though economic growth remains weak. The IW forecasts only modest private consumption growth next year, with imports outpacing exports and both public and private investment carrying most of the growth.
Impact: International employees and self‑employed residents can expect continued high deductions from gross income, leaving less net pay even if nominal wages rise. Employers hiring from abroad face a challenging environment for attracting talent, as Germany’s high social contributions remain a core part of the total “cost of working” here.
Government hopes for “chancellor’s majority” on Wehrdienst and pensions
The black‑red coalition faces a critical “super Friday” in the Bundestag, with back‑to‑back votes on the Wehrdienst law and the pension package. Merz wants both bills passed solely with coalition votes to demonstrate control, but internal CDU/CSU dissent on pensions has forced intensive last‑minute negotiations. Live coverage in major outlets underscores that failure would severely weaken the government at the end of its first year in office.
Impact: For internationals, political instability could slow or complicate planned reforms on immigration, housing, and digital administration that many rely on for visas, registrations, and access to services. A successful vote would reinforce policy continuity, while a collapse could trigger months of uncertainty just as many companies are deciding on new investments and hiring.
School strike calls and protests against Wehrdienst plans spread
On the eve of the Bundestag vote, thousands of pupils and activists demonstrated in cities like Munich against the planned Wehrdienst model, with organizers calling for a school “strike”. Education authorities, however, insist that Friday remains a normal school day and warn that unexcused absences could have consequences, while the Defence Ministry defends the reform as necessary for national security.
Impact: International families with school‑age children may encounter disruptions, politicized debates at schools, and potential schedule changes around demonstrations. The visible youth opposition highlights how polarizing the security agenda has become, something newcomers will quickly notice in social circles, universities, and workplaces.
Housing in Germany: Prices and rents rise again, shortages worsen
Fresh analyses of nationwide housing data, widely cited in the business press, show that residential property prices have risen again after a brief correction, with many regions recording increases of more than 3 percent year‑on‑year and some new builds up by over 30 percent. Net cold rents have increased in around 93 percent of districts compared with the previous year, while demand for rental flats remains very strong, especially in larger cities.
Impact: International renters face tougher competition, higher rent burdens, and more pressure to accept smaller or less central flats. For those planning to buy, the renewed price upswing means that delaying purchase could become more expensive, though the government promises faster planning rules and more construction to ease the crunch.
Source: https://www.schwaebisch-hall.de/ratgeber/immobilie-kaufen/immobilienpreise.html
Limited S‑Bahn service in Berlin due to switch repairs
In Berlin, several S‑Bahn lines are operating only with restrictions this Friday morning because a faulty switch at Ostbahnhof needs urgent repair. Passengers are warned of cancellations and longer intervals on key commuter routes, with knock‑on delays expected during rush hour.
Impact: International residents in Berlin who depend on public transport may face late arrivals to work, study, or visa appointments, so checking live timetables and allowing extra travel time is essential. Recurring infrastructure problems on major urban networks also factor into housing choices for newcomers deciding how far from the city center they can live while still commuting reliably.
That’s it for today’s edition of The German Minutes — check back tomorrow for a fresh digest of the stories that matter most to internationals living in Germany.