Ryanair is cutting 800,000 seats and cancelling 24 routes in Germany. It blames high airport taxes and fees for the cut. Airports in Dortmund, Dresden, and Leipzig will remain closed to Ryanair. You'll now pay more to travel by flight. [1]
The German government is asking some small and medium-sized businesses to repay COVID-19 emergency aid. This is triggering backlash and criticism from affected companies. [2]
Winter is here, so is the wintertime. On October 26th, the clocks will go back from 3:00 a.m. to 2:00 a.m.
Active Pension: Earn €2,000 a Month Tax-Free
Starting January 1, 2026, Germany plans to introduce the “active pension.” It's a new incentive for retirees who want to keep working.
Under this new scheme, you can earn up to €2,000 per month tax-free (€24,000 per year) while working in retirement.
Paying for pension insurance is optional for you. However, your employer will continue to pay their portion.
You don't have to pay unemployment insurance.
Example Calculation
Suppose you earn €2,000 per month with the active pension. In this case, you’ll get €1,788 net. You paid no taxes and only paid health and long-term care insurance contributions.
A regular employee earning the same amount (€2,000) takes home €1,490. This is approximately €300 less.
Who Can Benefit From an Active Pension?
An active pension applies only if you are employed after reaching your statutory retirement age. It doesn’t matter if you already receive your pension or not.
Freelancers, self-employed people, and civil servants don’t qualify for this benefit.
Why Is the Government Introducing It?
To ease the shortage of skilled workers in Germany.
To reduce the burden on the social security system.
Is an Active Pension Scheme Live?
The active pension scheme still needs approval from the Bundestag. However, it’s expected to start from January 1, 2026.
The German Bundestag has passed the “Bau-Turbo” law to speed up housing approvals and fight the ongoing housing shortage.
Under the new rules,
Building permits must be approved within three months,
Municipalities will get more flexibility to simplify local planning.
Towns can skip detailed land-use plans.
Relax noise protection rules to speed up construction.
The "Bau-Turbo" rules are temporary. They are proposed to last until 2030.
The Bau-Turbo law still needs the Bundesrat’s approval before it becomes law.
It’s part of the government’s effort to make building in Germany faster, cheaper, and more efficient.
Bürgergeld Reform
As of mid-October 2025, the German government has finalized the Bürgergeld reform. It'll be replaced in 2026 by a stricter welfare program called Neue Grundsicherung (New Basic Security).
Here is what the new reform proposes.
The reform increases sanctions for recipients who miss Jobcenter appointments or refuse suitable work. The first missed meeting will reduce benefits by 30%. Repeated infractions can lead to full suspension.
Asset protections will be tightened, forcing beneficiaries to use savings sooner.
Housing support would be capped. Rent costs can only be covered up to 1.5× the local maximum allowable rent.
Early budget estimates suggest the reform will save less than €100 million. It's far below Chancellor Merz’s initial target of €5 billion.
Critics from the Greens and the Left call the changes “inhumane.” On the other hand, the government frames them as a return to “responsibility and reciprocity” in welfare policy.
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Germany’s Chancellor is hosting an auto summit to address the crisis in the German car industry. German auto manufacturers are cutting jobs and delaying investments. The government aims to secure the sector’s future amid challenges such as EU emissions rules, the EV transition, and competition from China. [1]
Several Berlin Kita have recently closed due to a steep drop in the number of children. The city’s Education Senate attributes this to Berlin’s declining birthrate. Officials warn that further closures may follow. [2]
German students are falling behind in science and math compared to their peers internationally, and the trend has worsened over recent years. Education officials warn that this lag could hurt Germany’s future competitiveness in technology and innovation. [3]
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New here? Check out GermanPediaDid someone forward you this? Subscribe to this newsletter. Essentials Finance : Learn the strategies to save taxes when receiving severance pay. There are two main strategies to save taxes on your severance pay: The one-fifth rule and contributing to the pension insurance. There are certain things you must do to qualify for these strategies. This requires advance planning. We have explained both strategies in detail and what you should keep in mind here. Health...
New here? Check out GermanPediaDid someone forward you this? Subscribe to this newsletter. Essentials Finance Married couples who own a rental property can reduce their tax using a strategy called the Ehegattenschaukel. Here is how it works. You sell your investment property to your spouse at the current market price. Your spouse depreciates the property using the new, higher purchase price. Your spouse can deduct the depreciation value from their income. Hence, reducing the tax. After ten...
New here? Check out GermanPediaDid someone forward you this? Subscribe to this newsletter. Essentials Finance Find out if your relative left money behind in a German bank. Up to €4.2 billion is sitting forgotten in German bank accounts. Most of it belongs to people who have died. Banks call these "dormant accounts." You have to contact different organizations depending on which bank your relative had an account with. You can find out the information about these organizations here. Finance...
