The German Minutes - December 7, 2025
🇩🇪 Germany Political & Government News Digest – Dec 06, 2025
Germany’s major dailies today focus on Europe’s shifting climate and energy rules, the use of frozen Russian assets, and ongoing economic strain, all of which have clear implications for internationals living and working in Germany.
EU Rethinks 2035 Combustion Engine Phase-Out
Recent reporting based on EU and German government sources indicates that Brussels is considering delaying an automotive support package and loosening its plan to effectively end sales of new combustion‑engine cars from 2035, after strong lobbying from Germany and major carmakers. Proposals under discussion include giving more leeway to hybrids and engines running on renewable or climate‑neutral fuels, rather than a strict all‑electric requirement.
Impact: For internationals in Germany, this likely means a slower but still steady shift toward electric mobility, with combustion and hybrid vehicles remaining available for longer, which can affect car‑buying decisions, resale values, and company‑car policies. Businesses in engineering, manufacturing, and auto supply chains may see slightly less immediate structural pressure but continued regulatory uncertainty when planning investments and careers.
Source: https://www.reuters.com/business/germanys-merz-wants-eu-states-share-risks-russian-asset-plan-alongside-belgium-2025-12-04/ (background citing Handelsblatt)
Germany Pushes EU to Share Risks of Using Frozen Russian Assets
The European Commission has proposed raising around 90 billion euros for Ukraine via international borrowing and/or proceeds linked to frozen Russian assets, and Chancellor Friedrich Merz is pressing for the financial and legal risks of this approach to be shared proportionally among EU member states. Discussions involve how potential losses or legal challenges would be allocated and how quickly such a fund could be made operational.
Impact: For internationals in Germany, this signals continued German engagement in EU‑level financing that can shape broader fiscal policy, with possible knock‑on effects on national budget debates, taxation priorities, and public spending on social programs, integration, and infrastructure. Companies and professionals tied to defense, reconstruction, or financial services may see new business opportunities and regulatory developments as the EU defines mechanisms for handling sanctioned assets.
ECB Voices Concerns Over Using Russian Assets
Coverage of European debate notes that the European Central Bank has expressed strong reservations about using frozen Russian state assets as backing for large Ukraine‑related borrowing, warning of legal and financial‑stability risks. Commentators in German media discuss whether political pressure to “do more” for Ukraine justifies pushing the legal limits of property protection and central bank independence.
Impact: For internationals in Germany, this deepens the broader EU debate on the rule of law and investor confidence, factors that influence long‑term economic stability, interest rates, and ultimately housing costs and business financing conditions in Germany. If the legal handling of sanctioned assets becomes a precedent, it may also shape future sanctions regimes that affect cross‑border banking, remittances, or investments by residents with ties to third countries.
Source: https://www.kyivpost.com/post/65721
Pressure Mounts Over EU Car‑Sector Support Package
Reports drawing on a leak highlighted by Handelsblatt say the European Commission may delay a planned support package for the automotive sector, in part because of tensions over whether to relax the 2035 emissions target for new cars. German policymakers and industry representatives argue that rigid rules could accelerate job losses in the country’s key car and supplier industries, which have already seen thousands of positions cut.
Impact: For internationals working in Germany’s auto and engineering hubs, this underscores ongoing restructuring risks, potential hiring freezes, and the need to keep skills aligned with electrification and digitalization. Regional labor markets in states like Bavaria and Baden‑Württemberg may remain robust but more volatile, affecting career security, relocation choices, and local housing demand.
Germany Urges Softer EU Combustion Rules
Energy and climate coverage referencing Handelsblatt notes that EU transport officials are open to “all technologies,” including efficient combustion engines and hybrids using low‑carbon fuels, while Berlin presses to avoid an outright ban on new combustion‑engine cars in 2035. This reflects a balancing act between climate targets, industrial competitiveness, and voter concerns about mobility costs.
Impact: For internationals, the debate affects long‑term transport planning: city‑level restrictions on older vehicles will still tighten, but the national framework may remain technology‑neutral for longer, influencing which cars are practical to own or import. Companies offering mobility services, fleet management, or charging infrastructure must navigate a mixed technology landscape, creating both opportunities and complexity for skilled workers and entrepreneurs.
Source: https://www.cleanenergywire.org/news/commissioner-says-eu-amend-2035-ban-new-combustion-engine-cars
Retail Bankruptcies Highlight Structural Strains in German Economy
A recent study discussed in German‑language news shows a sharp rise in bankruptcies among smaller retailers, who struggle to compete with large online platforms and big‑box chains. Analysts link this to changing consumer habits, high costs, and uneven digitalization, describing a “David versus Goliath” situation on Germany’s high streets.
Impact: For internationals, this trend may change the character of many neighborhoods, with independent shops closing and more services moving online, affecting everyday shopping, jobs in retail, and the attractiveness of certain areas for housing. Job‑seekers and small business owners may need to focus on sectors and business models more resilient to online competition, such as specialized services, gastronomy, or highly localized offerings.
Source: https://www.dw.com/en/germany-news-shop-bankruptcies-surge-across-germany/live-75010590
Wagenknecht Party Drops Founder’s Name
Reports on the party founded around Sahra Wagenknecht describe a strategic rebranding in which the movement is dropping the explicit reference to its founder from its official name. Commentators see this as an attempt to broaden appeal beyond a personality‑driven protest party and position itself more firmly in Germany’s evolving party landscape.
Impact: For internationals, shifts in Germany’s party system can eventually translate into different coalitions and policies on immigration, social benefits, and labor market rules at both federal and state levels. A stronger or more stable protest party could complicate coalition-building and add unpredictability to future reforms on residency, citizenship, and integration programs.
Source: https://www.sueddeutsche.de/news
Check back tomorrow for another edition of “The German Minutes” to stay on top of the developments shaping life, work, and opportunity in Germany.