Germany's coalition government of CDU/CSU and SPD has agreed on a comprehensive 34-point reform package aimed at reviving the stagnant economy. The deal includes €10 billion in annual income tax relief for small and middle incomes, a timeline for pension reform with a new investment-based element, labor market flexibilization (extending fixed-term contracts up to 48 months, easing dismissal rules for high earners, abolishing telephone sick notes), support for strategic industries, and bureaucratic simplification. The package was presented with a show of unity by Chancellor Friedrich Merz, SPD leaders Bärbel Bas and Lars Klingbeil, and CSU leader Markus Söder. Reactions are mixed: business groups and Deutsche Bank welcome the reforms, while unions (Verdi, IG Metall) and the Green Party criticize them as mistrustful of workers and insufficient.

After a 50-year struggle, the German government has permanently protected the remaining 14% of the Hambach forest from open-pit lignite mining by RWE, designating it a nature conservation area. The 12,000-year-old forest, located between Aachen and Cologne, had been the site of a long conflict between environmentalists and the energy company. The decision follows years of protests, a 2018 court order halting clearing, and a 2019 recommendation by Germany's Coal Commission to protect the forest and phase out coal by 2038. The Hambach mine is scheduled to stop extracting coal by 2029. The remaining forest will become a publicly-managed wilderness development area from 2035, with two ecological corridors connecting it to neighboring woodland and a cycle and pedestrian path for public access. This marks a significant victory for climate and environmental activists in Germany.

Background: France and Germany proposed a gradual integration model for EU candidate countries, offering single market access and observer status to maintain momentum amid slow enlargement talks. Today's development: A detailed analysis of the Franco-German proposal reveals it explicitly omits Turkey, despite Turkey's official candidate status, focusing only on the Western Balkans and Moldova. The proposal offers a structured gradual integration path with tools such as privileged access to the single market, observer status in EU institutions, and participation in informal Council meetings, all tied to reform progress and reversible if conditions deteriorate. Critics argue this may create a 'waiting room' rather than a path to full membership. The European Commission is expected to formalize a proposal in the coming months.

German prosecutors and police conducted nationwide raids, including at the German Football Association (DFB) headquarters in Frankfurt, on suspicion of corruption related to the 2024 European Football Championship. City administrations are alleged to have received thousands of preferential tickets from the Euro 2024 GmbH, a subsidiary of UEFA and the DFB. A 66-year-old former employee of Gelsenkirchen is under investigation for allegedly receiving a financial advantage worth around 2,400 euros by being invited to a semi-final match. The investigation concerns bribery and granting of advantages.

German prosecutors have arrested a German-Rwandan man, identified as Innocent S., on suspicion of complicity in the 1994 Rwandan genocide. He is accused of ordering the deaths of 25 Tutsis while serving as an assistant to the mayor of Kayove, and personally stabbing one victim. The arrest, under universal jurisdiction, highlights Germany's continued prosecution of genocide suspects. The 1994 genocide killed over 800,000 Tutsis and moderate Hutus.

Four German startups—Focused Energy, Marvel Fusion, Proxima Fusion, and Gauss Fusion—are competing in the global race to build the first commercial nuclear fusion reactor. Investment in private fusion research has surged to nearly €13 billion by end of 2025, with 53% going to US companies and about one-third to Chinese firms, while European companies received just over €700 million. German startups leverage strong research and industrial ecosystems but face a funding gap. Focused Energy plans a prototype by 2037 and a commercial plant in the early 2040s, supported by RWE and government pledges of over €2 billion. The race highlights concerns about non-European dominance in a sector the IEA estimates could be worth over $350 billion by 2050.