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The German government faces considerable challenges following its summer recess. The issues confronting the administration remain substantial.
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The US is exerting economic pressure on Iran to force a peace agreement. China is resisting sanctions, India is balancing between the US and Iran, while the United Arab Emirates has halted trade with Iran.
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An Argentinian court has ordered the return of a painting by Giacomo Antonio Melchiorre Ceruti, seized in a Nazi-looted art case. The artwork, formerly owned by Jewish art dealer Jacques Goudstikker, will be returned to the Netherlands after a public exhibition in Argentina.
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The German federal government plans to abolish penalty-free early retirement for those with long insurance records, facing opposition from eight state premiers. The measure costs the pension insurance around 400 million euros annually, with savings only materializing after five years due to transition periods.
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Agriculture Minister Alois Rainer plans to increase agricultural subsidies while the federal government intends to save on housing benefits. Farmers are to receive 60 million euros without application, in addition to interest-subsidized loans and tax privileges. The grain harvest is average for the years 2020 to 2025.
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The AfD leads in polls for the Saxony-Anhalt state election with 42 percent, while the CDU is at 22 percent. Key issues are integration, education, and the economy. Satisfaction with the state government is low, and many perceive the AfD as more capable of solving problems.
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High fuel prices in Europe are due to tight refinery capacities, disrupted trade routes, and a general diesel shortage, despite moderate crude oil prices. Refinery margins are high as demand for finished products exceeds supply.
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Germany's economy grew by 0.3 percent in the second quarter of 2026, exceeding expectations. Forecasts for the full year 2026 have been raised to 1.3 percent or higher.
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Hungarian universities are once again permitted to participate in the Erasmus programme following a decision by the EU Commission. This is part of a package of measures aimed at combating corruption and releasing EU funds, which also includes the dissolution of foundations and the return of universities to state control.
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The Federal Court of Justice (BGH) ruled that a lawyer who repeatedly cannot connect to a video hearing risks a default judgment. The BGH emphasized that lawyers must proactively resolve technical issues and provide specific details about their connection attempts to avoid this.
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