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Special economic zone in Ukraine , Cyprus talks , Combustion engine ban overturned , Care reform , CSU party conference
published by Sigrid Arteaga
Friday, December 12, 2025
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Bild: The Procrastination Government / Die Aufschieberitis-Regierung
FAZ: Merz: Germany has never seen reforms this extensive / Merz: So umfangreiche Reformen hat es in Deutschland nie gegeben
Funke: Less hatred and incitement in Berlin – but police give no all-clear / Weniger Hass und Hetze in Berlin – aber Polizei gibt keine Entwarnung
Handelsblatt: Palantir CEO Alexander Karp: „No one talks about Germany anymore“ / Palantir-CEO Alexander Karp: „Niemand spricht mehr über Deutschland“
RND: 16-year-old stabbed near Christmas market in Herford / 16-Jähriger nahe Weihnachtsmarkt in Herford niedergestochen
SZ: Build faster and save more intelligently / Schneller bauen und klüger sparen
Tagesspiegel: Citizen’s allowance reform and faster road construction: coalition wants to „deliver“ before Christmas / Bürgergeldreform und Tempo beim Straßenbau: Koalition will noch vor Weihnachten „liefern“
taz: De-bureaucratization / Entbürokrötisierung
Welt: Mini growth shrinks – debt package ineffective / Mini-Wachstum schrumpft – Schuldenpaket wirkungslos

Top-News

The United States proposes a demilitarized special economic zone in the Ukrainian-controlled Donbas: According to Ukrainian President Volodymyr Zelenskyy, the US proposal envisages Ukrainian troops withdrawing from the affected part of the Donetsk region, while Russian forces would in return refrain from advancing into the area. It remains unclear how such a zone would be administered and how Russia could be prevented from continuing to advance regardless. Zelenskyy also said that the plan includes the withdrawal of the Russian army from the regions of Sumy, Kharkiv, and Dnipropetrovsk. For Zaporizhzhia and Kherson, the proposal reportedly предусматриes freezing the current front line. According to Zelenskyy, any cession of territory to Moscow could only be decided through a referendum in Ukraine.n-tv.de, spiegel.de, spiegel.de

  • Volodymyr Zelenskyy has called for the involvement of the United States in security guarantees for Ukraine. These should become part of a European deterrence strategy vis-à-vis Russia. tagesspiegel.de
  • According to the White House, US President Donald Trump is growing increasingly impatient over the war in Ukraine. He is demanding concrete progress instead of further talks. welt.de
  • EU member states want to permanently block the Russian central bank assets frozen in Europe in order to secure long-term loans for Ukraine. The plan is to be adopted by a majority decision, preventing Hungary or other states from exercising a veto. sueddeutsche.de

Kyiv’s public prosecutor reports a deadly bombing attack: A member of the National Guard was killed and four other people were injured. Two explosive devices detonated in quick succession—the second when police and emergency services were already at the scene.

  • Russia claims to have captured the eastern Ukrainian city of Siversk. Ukrainian sources, however, reported ongoing fighting and partial control by both sides.
  • Ukrainian drone attacks temporarily brought air traffic in Moscow to a standstill. According to Russian statements, 287 drones were shot down, 32 of them over the capital; this was one of the largest attacks since the beginning of the war.
Politics

Chancellor Friedrich Merz and NATO Secretary General Mark Rutte see US deployment plans on track: Both continue to assume that the United States will begin deploying intermediate-range weapons in Germany in 2026. There is no reason to doubt the agreements with Washington concluded under former President Joe Biden or to see a retreat from the mutual security commitment, Merz said. Rutte emphasized that the US remains committed to its obligations to the alliance. However, the new security strategy of the current US administration states that it intends to take on less responsibility for Europe in the future. tagesspiegel.de

  • The US House of Representatives has voted in favor of a bill intended to limit the planned withdrawal of US troops from Europe. Under the proposal, the US government would not be allowed to permanently reduce the number of troops stationed in Europe below 76,000. The Senate still has to approve the measure.
  • NATO Secretary General Mark Rutte issued a stark warning about the threat posed by Russia, saying the Kremlin would not stop at Ukraine and that Europe would be Russia’s next target. He called for greater efforts in defense spending and support for Ukraine. n-tv.de, zdfheute.de
  • Chancellor Friedrich Merz described strengthening the European pillar of NATO as the top priority. The new US security strategy under the Trump administration is being interpreted as a signal of a departure from traditional transatlantic cohesion. faz.net
  • Foreign Minister Johann Wadephul reaffirmed the United States’ clear commitment to NATO on ZDF. Despite some unsettling passages in the new national security strategy, he stressed that Washington stands by the alliance and guarantees Europe’s security through its nuclear umbrella. zeit.de

Coalition committee:

  • The leadership of the CDU/CSU and SPD want to speed up key infrastructure projects by simplifying procedures and limiting environmental reviews or lawsuits by associations. Rail, road, waterway, and bridge construction projects are to receive special status in order to address bottlenecks in new construction and renovation more quickly. sueddeutsche.de
  • An agreement on reforming the citizen’s allowance has still not been reached.
  • The reform of the Heating Act is to be prepared by the end of January 2026 with more technology-neutral and simpler core principles; in future, the law is to be called the Building Modernization Act. The Greens criticize the postponement as „irresponsible“ and accuse the coalition of leaving citizens in the dark.
  • The CDU/CSU and SPD have agreed on details of a new private pension scheme. Contributions of up to 1,200 euros will receive a subsidy of 35 cents per euro, with a maximum of 420 euros per year. The new depot model will launch in 2029 and is aimed particularly at young people without existing pension plans.

The federal government and the states are planning a fundamental realignment of long-term care reform by the end of 2026. The system is to be structurally overhauled while retaining the five care levels and existing co-payment rules. The system needs to be restructured, said Health Minister Nina Warken after the final meeting of a joint working group that had worked for five months. Planned measures include new services for people in need of care who live at home, as well as voluntary health check-ups for prevention. It is also being examined whether family caregivers could receive financial relief if they reduce their working hours. The concrete financing of the reform remains open for now but is to be clarified by the end of next year. handelsblatt.com, zdfheute.de

Further reports:

  • Digital Minister Karsten Wildberger announces that ID cards will be available in smartphone wallets starting in early 2027. welt.de
  • Brussels criticizes the lack of progress in digitizing tax administration. ariva.de
  • Federal Fiscal Court: Customs authorities may not, for the time being, seize the oil tanker „Eventin.“zdfheute.de
  • North Rhine–Westphalia: The Finance Ministry has purchased a data carrier on holdings in offshore tax havens from an informant. wdr.de
  • Thuringia: AfD reaches its highest level yet in a state election poll. tagesspiegel.de
  • Berlin: Charges brought against former RBB director Patricia Schlesinger; breach-of-trust allegation. dwdl.de
  • Berlin: Parliamentary inquiry committee into the CDU funding scandal likely to be established this year. tagesspiegel.de
  • Bremen: Former parliamentary commissioner for the armed forces Eva Högl becomes the new interior senator. tagesspiegel.de
  • Brandenburg: Cleanup work continues after a pipeline accident; soil and groundwater are to be examined. zdfheute.de
  • Hesse: AfD parliamentary group still without a vice president of the state parliament. n-tv.de
  • North Rhine–Westphalia: The A45 Rahmede valley bridge will reopen—earlier than planned—before Christmas. n-tv.de
  • Thuringia: The Office of the Attorney General arrests a suspected member of the terrorist organization Islamic State in Nordhausen. mdr.de
  • Berlin: Red City Hall opens the treasure chamber of gifts from official guests. tagesspiegel.de
Around the World

EU Commission abandons 2035 ban on combustion engines: The Commission has moved away from its previous plan to allow only emission-free new cars from 2035 and instead wants to propose a 90 percent reduction in average CO₂ emissions from new vehicle fleets. This would mean that the sale of petrol and diesel vehicles would remain fundamentally permitted. No full emissions target is planned for 2040 either. EPP parliamentary group leader Manfred Weber described the end of a pure combustion engine ban as a done deal and spoke in Bild newspaper of more flexible rules in the future. CSU leader Markus Söder welcomed the change in principle but criticized the fact that a ten percent share for combustion engines would be too low. . tagesschau.de, n-tv.de, zdfheute.de (Weber) n-tv.de (Söder)

Further reports:

  • Greece’s Finance Minister Kyriakos Pierrakakis becomes the new head of the Eurogroup. n-tv.de
  • WHO categorically rejects claims by the US administration about a link between vaccines and autism. zeit.de
  • Austria dismantles US plans to divide the EU. welt.de
  • European Court of Human Rights condemns Georgia over police violence at a demonstration. spiegel.de
  • European Court of Justice sets criteria for applicable law when working in multiple EU member states.stern.de
Business

Railway CEO Evelyn Palla announces corporate restructuring and a punctuality push: Palla plans to reduce the size of the management board from January and cut numerous functions below the executive level in order to streamline the structures of the state-owned company. The goal is a more efficient and customer-friendly railway that delivers a „consistent fresh start.“ At the same time, Palla announced plans to stabilize the recently sharply declining punctuality figures and to achieve at least 60 percent on-time long-distance trains next year. rnd.de, sueddeutsche.de

Demographic change is accelerating: By 2035, around one quarter of Germany’s population is expected to be aged 67 or older, according to the Federal Statistical Office. In 2024, the share of people of retirement age was still 20 percent. The main reason is the retirement of the baby boomer generation. In the long term, the authority also expects the total population to decline to under 75 million by 2070; in 2024 it stood at almost 84 million. spiegel.de

Young people are turning away from social media: More and more 16- to 18-year-olds are deleting their accounts and avoiding social networks. According to the Postbank’s „Digital Study 2025,“ the main reasons are hate, aggression, misinformation, and the risk of addiction. WhatsApp, YouTube, and TikTok are losing users particularly sharply, while only Pinterest is seeing a slight increase. Around 1,000 young people were surveyed for the study in September.stuttgarter-nachrichten.de

Further business news:

  • Ifo Institute lowers its economic forecast. tagesschau.de
  • Thyssenkrupp temporarily shuts down its electrical steel production facilities. wiwo.de
  • Time magazine names the developers of artificial intelligence collectively as Person of the Year. faz.net
  • Entertainment group Walt Disney invests one billion dollars in OpenAI. faz.net
  • Disney accuses Google of massive copyright violations involving AI. heise.de
  • SZ editor-in-chief Wolfgang Krach resigns. kress.de
Lifestyle
Community News

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Sports
Gedöns

In Germany, reform announcements are often treated like New Year’s resolutions: spoken with great conviction, carefully documented, and then revisited sometime „next year.“ This is why phrases like „noch vor Weihnachten liefern“ („deliver before Christmas“) trigger a very specific national reaction—hopeful nodding, quiet skepticism, and a collective instinct to keep the receipt, just in case.

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