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Germany news: Reform row raises fears for Merz's coalition
Germany news: Reform row raises fears for Merz's coalition
Richard Connor with AFP, AP, dpa, Reuters, SID, KNA, epdPublished 10/02/2026Published October 2, 2026last updated 10/03/2026last updated October 3, 2026Germany's conservatives are dialing up the pressure on their center-left partners ahead of crunch talks next week. Meanwhile, Volkswagen's latest cost-cutting push has triggered a furious response.
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This blog is now closed. Read below for a roundup of top stories from and about Germany from Friday, October 2, 2026:
- Chancellor Friedrich Merz's conservatives are pressing their coalition partners to deliver promised pension and labor market reforms
- Merz's Christian Democrats could hold up a Social Democrat-backed tax reform, fueling fears of a coalition collapse
- IG Metall accuses Volkswagen of 'disrespectful' handling of its decision to scrap key labor agreements
- The clash comes as VW plans an extra 50,000 job cuts worldwide, with several German plants facing an uncertain future
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Skip next section That's all for today10/03/2026October 3, 2026That's all for today
We're closing Friday's live coverage of events in Germany. Thank you for joining us.
We'll be back in the morning with all the details from the German Unity Day celebrations.
Edited by:Sean Sinicohttps://p.dw.com/p/5NgPySkip next section Antifa demonstrators converge on German Unity Day event10/02/2026October 2, 2026Antifa demonstrators converge on German Unity Day event
Mark HallamFar-left antifa demonstrators also took to the streets of Bremen on Tuesday, under the slogan "No peace with the state."
A police spokesperson estimated turnout at around 700 people.
The group marched from the city center in the new town and back, accompanied by a large police presence and sometimes with a helicopter hovering overhead.
Police noted isolated cases of fireworks and other pyrotechnics going off but no injuries or clashes as of early evening.
Another of the protesters' banners called for Germany's domestic intelligence agencies, the Verfassungsschutz, to be dismantled.
Bremen is known both as a majority moderate, left-leaning city and as one with a small but active extreme-left fringe.
Merz, Bundestag's Klöckner, mayor kick off German Unity Day celebrations early in Bremen
Mark HallamSeveral leading German politicians headed to central Bremen on Friday, on the eve of the anniversary of German reunification on Saturday, October 3.
The public holiday's festivities are centered in the northern city of Bremen this year, because the city-state currently holds the rotating presidency of the regionalized upper house of parliament, the Bundesrat.
Bremen Mayor Andreas Bovenschulte received a delegation of some of Germany's most senior political leaders, including Chancellor Friedrich Merz, Bundestag President Julia Klöckner, and the state premiers of North Rhine-Westphalia, Hendrik Wüst, Baden-Würrtemberg, Cem Özdemir, and Schleswig-Holstein, Daniel Günther.
The group walked around the marketplace in central Bremen, with a heavy security escort, before posing in front of the city hall and then going inside with the mayor.
On Saturday morning, a church service at Bremen's St. Peter's Cathedral at around 10 a.m. local time will get the day's schedule underway. As well as Merz, President Frank-Walter Steinmeier is expected to attend the service.
Edited by:Zac Crellinhttps://p.dw.com/p/5NgJwSkip next section Large protest at Brandenburg Gate against military service, defense spending10/02/2026October 2, 2026Large protest at Brandenburg Gate against military service, defense spending
Mark HallamHundreds of people have gathered at Berlin's central Brandenburg Gate for a demonstration and concert opposing the possibility of a return to compulsory military service, and German plans to increase defense spending.
Gathered under the motto "unwzingbar," which you might translate as "incoercable" or perhaps even "unconscriptable," the crowd chanted slogans like "military service, never again," and "the rich want war, the poor want a future."
Police estimated turnout early on Friday evening at about 2,000, albeit with a program that was set to continue for a few more hours, until about 9 p.m. local time (1900 UTC).
Organizers included groups like Attac, a left-leaning group primarily focused on taxation and monetary policy, the DFG-VK German Peace Association, and the IJV International Youth Association.
Germany is not as yet reintroducing a period of military or civilian service, which it had for many but not all young men until as recently as 2011, but some politicians have warned it might ultimately be necessary.
For now, the Bundeswehr has started sending a questionnaire to 18-year-olds — with men obliged to fill them out and women invited to do so — seeking to gauge their theoretical interest in serving. The Bundeswehr says that this, coupled with a more general recruitment drive, has so far led to it hitting recruitment targets as it seeks to expand the ranks in the coming years.
New military service rules: Young Germans face tough choice
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The organizers also appealed to the government to reallocate the increased spending it foresees for defense into other social areas, some of which are facing the prospect of cuts.
Similar demonstrations are expected on Saturday in Berlin and Stuttgart.
German police seize 33,000 items in neo-Nazi music raids
German investigators have seized around 33,000 CDs, records and cassettes in a major operation targeting the far-right music scene.
Authorities also seized around €2 million ($2.3 million) in assets and some 130 digital devices and storage media, prosecutors and police said on Friday.
Around 400 officers took part in Wednesday’s raids, which targeted four main suspects in the states of Mecklenburg-Western Pomerania, Schleswig-Holstein and Bavaria.
The four, aged between 43 and 55, are suspected of forming a criminal organization to produce and sell music promoting what investigators described as "National Socialist, antisemitic, racist and misanthropic ideology."
More than 20,000 of the recordings were found at properties linked to the four main suspects.
Investigators searched properties linked to eight further suspects in six other German states, and also searched sites in Estonia, Italy, Poland and the Czech Republic.
Investigators said the companies searched abroad were suspected of manufacturing the recordings but were unaware of their content.
No arrests were made. Authorities said the searches aimed to gather evidence and investigate existing suspicions.
Edited by:Zac Crellinhttps://p.dw.com/p/5NfUiSkip next section Nearly half of German long-distance trains late again10/02/2026October 2, 2026Nearly half of German long-distance trains late again
Nearly half of Deutsche Bahn's long-distance trains were late in September, as Germany's state-owned rail operator struggles with its aging network.
Just 52.4% of long-distance trains arrived on time, down from 54.2% in August and the third-worst monthly figure this year.
DB blamed extensive construction work and a persistently high number of infrastructure failures, particularly on long-distance routes.
Intercity Express (ICE) trains between Berlin and Wolfsburg, for example, repeatedly had to slow down because of the poor condition of the tracks.
That section forms part of the Berlin-Hannover route, which has now been closed for a major overhaul. Long-distance trains are being diverted via Braunschweig and Magdeburg, adding around 80 minutes to journeys between Berlin and Hannover. The work is expected to continue until December 2027.
DB considers an ICE or Intercity (IC) train punctual if it is less than six minutes late. Canceled trains are not included in that measure.
A separate passenger punctuality rate, which includes cancellations and counts arrivals of less than 15 minutes late as on time, stood at just 58.6% in September.
The company had targeted a long-distance punctuality rate of at least 60% this year, but says that goal is now unlikely to be reached.
Deutsche Bahn: Reliable no more?
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Edited by:Zac Crellinhttps://p.dw.com/p/5NfC4Skip next section Steinmeier steps into German coalition row — report10/02/2026October 2, 2026Steinmeier steps into German coalition row — report
German President Frank-Walter Steinmeier reportedly intervened in the government's recent dispute over care reform amid concerns about the survival of Chancellor Friedrich Merz's coalition.
News magazine Der Spiegel reported that Steinmeier called Finance Minister Lars Klingbeil of the center-left Social Democratic Party (SPD) and Interior Minister Alexander Dobrindt of the conservative Christian Social Union (CSU) on Tuesday.
The intervention by Germany's largely ceremonial head of state was highly unusual.
Der Spiegel said Steinmeier's intervention came after he spoke with Merz on the sidelines of an event in Karlsruhe on Monday. The president reportedly returned to Berlin with the impression that the coalition could collapse and Germany could face a political crisis.
The government on Friday declined to confirm the reported calls and rejected suggestions that the coalition was in crisis.
Deputy government spokesperson Sebastian Hille said the government remained "capable of acting," pointing to Wednesday's cabinet agreement on care reform.
He said the three governing parties were working together "well, constructively and reliably," and accused the media of placing disagreements at the top of a "conflict escalation scale."
What are the German government's pension, labor reforms?
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Edited by:Zac Crellinhttps://p.dw.com/p/5Nf5dSkip next section Department store Galeria files for insolvency, again10/02/2026October 2, 2026Department store Galeria files for insolvency, again
German department store chain Galeria has filed for insolvency for the fourth time in six years, putting the future of some 12,000 employees in doubt.
A spokesperson for the Düsseldorf district court said the application was filed on Friday morning.
Galeria said its 83 stores would remain open for the time being.
The Verdi trade union blamed "outrageous management mistakes" for the latest crisis and demanded rapid answers about what would happen to employees.
"Employees need a plan for the future now, not smoke and mirrors," Verdi retail chief Silke Zimmer said.
Galeria previously filed for insolvency in 2020, 2022 and 2024. Its most recent difficulties followed the collapse of Austrian investor Rene Benko's Signa empire, its former parent company.
A consortium comprising US investment firm NRDC Equity Partners and entrepreneur Bernd Beetz's BB Kapital SA took over Galeria in 2024.
Benko, who once controlled Galeria as well as Berlin's KaDeWe luxury department store, is currently serving a prison sentence for fraud.
Edited by:Karl Sextonhttps://p.dw.com/p/5NeOuSkip next section Germany's 1,000th player: 'I had no idea'10/02/2026October 2, 2026Germany's 1,000th player: 'I had no idea'
New Germany international Mika Baur has admitted he was completely unaware that he was making history when he became the 1,000th player to represent the men's national football team.
"I had no idea about it. I found out after the game," the 22-year-old Celtic midfielder said following Germany's 2-0 win over Serbia. "I'm delighted."
Baur came on for goalscorer Tom Bischof in the 77th minute and said the experience was difficult to put into words.
"It's a feeling you have where you hope it doesn't go away," he said. His phone was flooded with messages when he switched off airplane mode in the dressing room, while his debut shirt is destined for a special place.
"It's going to my parents and will be framed," said Baur, whose father Markus was part of Germany's handball World Cup-winning team in 2007. Read more about Germany's win over Serbia here: Klopp wins first game as Germany coach, without 'top dogs'
Edited by:Karl Sextonhttps://p.dw.com/p/5NeEdSkip next section German recovery still on shaky ground, trade group warns10/02/2026October 2, 2026German recovery still on shaky ground, trade group warns
Germany's emerging economic recovery remains fragile despite an improving outlook, the country's foreign trade association BGA has warned.
A BGA survey found companies reporting improved business conditions after diversifying supply and distribution routes and adapting to recent crises. However, many firms said red tape was hampering their operations.
"Companies can see light at the end of the tunnel again, but they are still driving with the handbrake on," BGA President Dirk Jandura said.
Leading German economic institutes have raised their growth forecast for this year to 1.3%, up from 0.6% in their spring forecast. The government is also expected to raise its forecast next week.
Debt-financed government spending on infrastructure and defense is a major driver of the expected growth.
Jandura said bureaucracy remained a significant drag, with 82% of companies surveyed naming it as one of the biggest obstacles to competitiveness and 78% saying they had yet to notice any reduction in red tape.
The improvement has also yet to reach the labor market, according to BGA, with more companies in the sector planning to cut jobs than create them.
Is Germany's weak economy boosting the right-wing AfD?
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Edited by:Karl Sextonhttps://p.dw.com/p/5Ndz0Skip next section German university graduates rise 3%10/02/2026October 2, 2026German university graduates rise 3%
The number of students and doctoral candidates graduating from German universities has risen by 3%, according to the Federal Statistical Office.
Some 527,600 people completed a degree in 2025, an increase of 16,000 from the previous year. Women accounted for 53% of graduates, unchanged from 2024.
Almost half of all qualifications were bachelor's degrees, with their number rising 4% to 256,000. Master's degrees increased 1% to 150,800.
The number of master's and state-exam qualifications allowing graduates to enter the teaching profession rose 6% to 32,400.
Law, economics and social sciences accounted for the largest share of qualifications at 41%, followed by engineering at 25%.
How Indian students end up exploited in Germany
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Edited by:Karl Sextonhttps://p.dw.com/p/5NdPVSkip next section Union slams VW over scrapping labor agreements10/02/2026October 2, 2026Union slams VW over scrapping labor agreements
Germany's IG Metall union has sharply criticized Volkswagen over its latest cost-cutting drive, accusing management of provoking a conflict "that the company cannot afford."
Thorsten Gröger, IG Metall's regional head for Lower Saxony and Saxony-Anhalt, told public broadcaster Deutschlandfunk that VW's approach was "disrespectful toward its own employees" and "irresponsible toward the company itself."
Gröger said worker representatives had listened to a 50-minute presentation from management without hearing "a single word" about plans to terminate key collective bargaining agreements, while the media had already been informed.
He described the move as "unprecedented in the history of Volkswagen" and said employee representatives were prepared for the dispute.
VW says employment conditions need to be revised because of mounting cost pressures.
The carmaker plans to cut 50,000 jobs worldwide in the coming years, on top of previously announced reductions. Around half of the additional cuts could come in Germany.
The longer-term future of entire VW plants in Emden, Hannover and Zwickau, as well as Audi's Neckarsulm site, also remains uncertain.
Volkswagen crisis: Emden plant closure impacts whole region
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Edited by:Karl Sextonhttps://p.dw.com/p/5Ncw1Skip next section German coalition infighting evokes Scholz-era collapse10/02/2026October 2, 2026German coalition infighting evokes Scholz-era collapse
Germany's conservative Christian Democratic Union (CDU) is stepping up pressure on its center-left Social Democratic Party (SPD) coalition partners ahead of talks next week on a series of contested economic and social reforms.
CDU General Secretary Franziska Hoppermann said Labor Minister Bärbel Bas, who is also an SPD co-leader, needed to produce legislation on pension reform "so that we can finally negotiate concretely."
Her comments to the Frankfurter Allgemeine Zeitung (FAZ) newspaper come as Chancellor Friedrich Merz prepares to bring labor market reforms before the coalition committee next week. Merz said this week that Germany had "some catching up to do" when it came to making the labor market more flexible.
The Handelsblatt newspaper reported that CDU parliamentary leaders were considering withholding support for Finance Minister Lars Klingbeil's income tax reform until Bas submits legislation on pensions and the labor market.
One government official described the increasingly fraught atmosphere as "real traffic-light vibes," according to the Handelsblatt, a reference to the bitter disputes that preceded the collapse of former Chancellor Olaf Scholz's three-party "traffic light coalition."
The CDU argues that reforms agreed by the coalition in July were a package and that the SPD cannot expect its preferred measures to go ahead while delaying concessions it made on pensions and the labor market.
Among the most contentious plans is the proposed abolition of penalty-free early retirement after 45 years of contributions. The measure faces opposition within the SPD as well as from several CDU state premiers.
The coalition committee is due to meet next week as the government tries to resolve disputes not only over pensions and the labor market but also taxation, care funding and other reforms.
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Edited by:Karl Sextonhttps://p.dw.com/p/5Ncw4Skip next section Welcome to our coverage10/02/2026October 2, 2026Guten Tag from DW's newsroom in Bonn.
Things are getting increasingly tense inside Chancellor Friedrich Merz's coalition.
The conservative Christian Democratic Union (CDU) is piling pressure on its center-left Social Democratic Party (SPD) partners to deliver on pension and labor market reforms agreed earlier this year. And the CDU appears ready to play hardball. The gloves are also coming off at Volkswagen. Germany's IG Metall union has accused VW management of provoking a conflict "that the company cannot afford." Stay with us here for these stories and more of what Germany is talking about today.
Edited by:Karl Sextonhttps://p.dw.com/p/5NcxAShow more posts