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Germany’s 2026 Test: Elections, Price Hikes and EU Choices

January choices will test whether Merz can steady Germany’s course.

Overview

  • Five state elections in 2026 — Baden-Württemberg and Rhineland-Palatinate in March, then Saxony-Anhalt, Berlin and Mecklenburg-Vorpommern in September — are expected to shape federal politics as the CDU calibrates its stance toward a rising AfD.
  • About 14 million Deutschlandticket users will pay €63 per month from January, up from €58, as the government seeks rail improvements to offset cost pressure.
  • Parents of first graders gain a legal right to all-day school care from the next school year, with further grades to be added in subsequent years.
  • Berlin is pressed to help forge the EU into a more coherent power bloc, with partners expecting German leadership and existing frameworks such as the E3 and a group with Poland and Italy already in use.
  • The EU’s January decision on the Mercosur agreement is flagged as an early signal of strategic alignment, while the Trump administration’s forthcoming National Defense Strategy — and a possible spring Fed leadership change — could indicate a practical U.S. shift away from Europe.