Germany in September 2026: the most important developments in economy
Germany's economy in September 2026 was dominated by Volkswagen's restructuring. Early in the month the company announced plans to idle and eventually close four German sites and cut up to 50,000 jobs by the end of the decade, with some reports putting the total at 100,000 by 2030. The supervisory board approved the plan on September 4, which also halves the model range by 2035 and ends the Seat brand. Works council representatives demanded that the four threatened sites be kept and considered legal action. Volkswagen said it would convert its Osnabrück plant into a defence facility producing components for Israel's Iron Dome system and set aside 16 billion euros for job cuts and closures. On September 18 it cut its 2026 profit forecast after a multibillion-euro write-down on Porsche, now expecting a margin of about one percent. On September 25 and 26 it recalled between roughly 2.1 million and 4 million vehicles over a steering defect, nearly one million of them in Germany. On September 30 it announced it would end nearly all collective bargaining agreements at year's end, affecting more than 100,000 employees.
Fuel prices were the second theme. Petrol reached its highest level since March 2022 and about 3 euros per litre. Chancellor Friedrich Merz said on September 15 that his government must act, rejected a windfall profits tax, and on September 19 the government approved a fuel discount. The Bundestag passed a Tankrabatt in an expedited procedure on September 25; it still needs the Bundesrat. Concern also grew over low gas storage ahead of winter; by September 28 storage stood at 57 percent, and VNG said winter supply was covered.
Other developments included the 10-year Bund yield reaching a 15-year high on September 14, a fall in industrial output and exports, and the United Arab Emirates' announcement of a 40 billion euro investment plan for Germany. BASF made a takeover offer worth 10.3 billion euros for Evonik, which Evonik rejected on September 28.
by WorldBrief & Maksim Micheliov | AI-generated summary
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