Overview
- An INSA poll commissioned by Bild shows record pessimism on growth under the CDU–SPD coalition, with 58.7% not expecting an economic upswing and 40% anticipating a deterioration in their finances.
- From January 2026, Germany raises the minimum wage to €13.90, lifts the minijob limit to €603, increases the commuter allowance to €0.38 per kilometer from the first kilometer, and boosts child benefits to €259 per month.
- Tax and insurance changes include a higher income tax allowance (€12,348), a higher Solidarity Surcharge threshold, doubled tax‑deductible party donation caps, electronic default for tax notices, and higher social‑contribution ceilings; insurers flag rising premiums, and TK chief Jens Baas expects the statutory add‑on to increase despite government assurances.
- Pension measures adopted this autumn feature an 'Aktivrente' allowing employed retirees to earn up to €2,000 per month tax‑free, and a provisional 3.73% pension uplift for about 21 million beneficiaries from 1 July pending spring confirmation.
- Legal and safety pressures intensified as the Munich Higher Regional Court issued a warrant and police detained ex‑CDU MP Axel Fischer in a bribery case tied to Azerbaijan, while police probed a B2 crash that killed three including a four‑year‑old, a life‑threatening pub stabbing in Cologne, and a Sulzbach am Main warehouse fire that caused about €40,000 in damage with no injuries.