24,806.97DAX · Oct. 8 close · −1.18%

DailyDrop.

1.1213EUR/USD · end of trading Oct. 8 · +0.13%
© 2026 DailyDropNo. 4
GERMANYAustralia editionBrazil editionComing soonCanada editionFrance editionGermany editionIndia editionItaly editionJapan editionKorea editionMexico editionNetherlands editionSingapore editionSpain editionSwitzerland editionTaiwan editionU.K. editionU.S. editionAll editions →
, THU., OCT. 8, 2026No. 4 · 6:00 p.m. CEST6 p.m. CEST
DAX24,806.97▼1.18%10/8EUR/USD1.1213▲0.13%10/8S&P 5007,801.77▼0.22%10/7WTI$88.28▼1.30%10/7Gold$4,140.70▼1.11%10/7
Domestic politicsPress ✓ 8 outlets · timetable for the reforms not published

After four hours of coalition committee talks: a joint pledge against extremism, but no timetable for the reforms

The Union and the SPD see democracy facing a “historic test.” In the Bundestag, Finance Minister Klingbeil defended the tax reform the same day; the Union ties its approval to laws on pensions and the labor market.

After more than four hours of talks on Wednesday evening, the Union and the SPD have set themselves against every form of political extremism. This emerges from a joint statement to the members of parliament by the caucus leaders Thorsten Frei (CDU/CSU), Matthias Miersch (SPD) and Alexander Hoffmann (CSU regional group). Democracy faces a historic test, it says. On the planned reforms, the coalition committed to swift implementation but presented no timetable; the word “reform” does not appear in the statement. Merz had said beforehand that full implementation of the July package by Christmas could not be managed, and he hopes for spring 2027. He expects a cabinet decision on pensions by the end of the year. The SPD rejects the planned abolition of pensions without deductions after 45 years of contributions.

On Thursday the Bundestag began the first reading of the 2027 income tax reform. Klingbeil called the draft a fair balance: citizens with small and middle incomes are to be relieved by roughly ten billion euros gross in 2027 and 2028, against additional revenue of 4.3 billion euros; the so-called rich tax (Reichensteuer) kicks in somewhat earlier for very high incomes. As an example he cited a family with two children and two middle incomes, who are meant to have about 600 euros more each year. The Union demands that Labor Minister Bärbel Bas first present draft laws on the labor market and pensions, and criticizes that the relief does not even offset bracket creep. The drafts went to the committees; nothing has been decided.

Open the story and DailyDrop’s take
By the numbers
4 hrslength of the coalition committee meeting on Wednesday evening (Tagesschau, Handelsblatt)
≈ €10 billiongross relief from the 2027/28 income tax reform; additional revenue €4.3 billion
≈ €600annual relief for an example family, according to Klingbeil
Economy · Business cycleSource ✓ Economy Ministry, autumn projection · Press ✓ 7 outlets

The federal government raises its 2026 growth forecast to 1.3 percent. For 2027 it expects 1.1 percent and three percent inflation

In its autumn projection, the Economy Ministry expects growth of 1.3 percent for 2026, up from 0.5 percent, and 1.1 percent for 2027, up from 0.9. For 2028 it projects 0.6 percent. According to Reuters, the research institutes arrive at the same figures in their autumn report. Inflation is to average 2.7 percent in 2026, 3.0 percent in 2027 and 2.2 in 2028. Exports are to grow 3.7 percent in 2026, private consumption only 0.3 percent; the unemployment rate stays at 6.4 percent. The ministry calls the economy more resilient than expected; Minister Katherina Reiche warns against euphoria and demands structural reforms. The wars in Iran and Ukraine are seen as a risk.

Open
Word of the day
Autumn projectionEconomy

The economic forecast that the federal government presents twice a year. It serves as the basis for tax revenue estimates and budget planning and often deviates only slightly from the reports of the research institutes.

Politics · Saxony-AnhaltPress ✓ 7 outlets · calls for resignation internal, no names

CDU in Saxony-Anhalt faces a severe test: lawmakers demand Schulze’s resignation, Radtke calls for expelling dissenters from the party

Two days after the election of AfD politician Tobias Rausch as state parliament speaker, the CDU’s position in Magdeburg is getting harder. According to reports, Rausch received 48 yes votes, 29 lawmakers voted against, and five abstained. Minister-President Sven Schulze had called on his caucus to abstain; few of the 15 CDU lawmakers followed. The caucus has shrunk from 40 to 15 members. According to Süddeutsche Zeitung and MDR, CDU lawmakers are demanding Schulze’s resignation internally, and a deputy leader of the CDU’s federal parliamentary group criticized him publicly.

CDA chairman Dennis Radtke demands party expulsion proceedings if it is confirmed that CDU lawmakers voted for Rausch. CDU state deputy leader Tullner told FAZ that the party is not an auxiliary force for the AfD. In the ZDF Politbarometer, a good two thirds of respondents see the AfD as a danger to democracy. Pistorius’s national anthem at the SPD protest march remains a topic of debate. A CDU state party conference is planned for early December.

Open
Markets · EnergySource ✓ market close, ECB reference rate · Press ✓ 6 outlets

The DAX closes 1.18 percent lower at 24,807 points. Brent jumps above $105 until Trump rules out attacks on Iran before the midterms

The DAX closed 1.18 percent lower on Thursday at 24,806.97 points. It slipped below 25,000 right at the open and at times fell below 24,800, its lowest level since late July. dpa-AFX, onvista and Handelsblatt cite high bond yields and oil prices as well as worries about France’s budget deficit. The Euro Stoxx 50 lost 1.1 percent at midday, the MDax 1.1 percent; Infineon dropped more than 3 percent, and the auto suppliers Aumovio and Schaeffler lost more than 6 percent at times in the MDax. The euro cost $1.1213 in the evening; the ECB had set the reference rate at 1.1186, after 1.1177 on Wednesday.

Oil prices jumped after Axios, NBC and “The Atlantic” reported that the White House is considering new attacks on Iran, possibly even before the midterm elections. Brent rose by more than 5 percent at times to $105.46; Bloomberg also cites a hurricane shutting down US production. In the afternoon Trump wrote on Truth Social that the US would not attack Iran at any point before the November 3 elections; the naval blockade remains, and according to Scripps he did not rule out attacks afterward. Oil gave up part of its gains, and Wall Street remained under pressure. A mitigating factor is that oil exports from the Persian Gulf are reaching almost 80 percent of their prewar level; the IEA is speeding up the release of oil reserves. Samsung announced record profit, and TSMC a 51 percent rise in quarterly revenue.

Open
Foreign policy · EuropePress ✓ 6 outlets

New British prime minister Burnham visits Merz: the friendship treaty enters into force, both countries want to strengthen cyber defense and sabotage defense together

Chancellor Friedrich Merz received British Prime Minister Andy Burnham at the Chancellery on Thursday for his inaugural visit. The opening included military honors. In the afternoon the two put into force the friendship treaty signed in London a year ago (the Kensington Treaty) by exchanging the instruments of ratification. It names sabotage, cyberattacks, foreign interference and the misuse of new technologies as fields of closer cooperation. The British government announced a new security partnership to go with it.

Other topics were support for Ukraine and the situation in the Middle East. According to reports, Burnham was open to Germany joining the GCAP fighter jet program, which Britain runs with Italy and Japan; a joint business forum is planned. The visit falls in a week in which Britain’s MI6 is checking possible information leaks at the BND after former BND chief Hanning was placed in pretrial detention; on Thursday the Bundestag panel ordered a special review.

Open
In brief
  • Court rules the Federal Network Agency’s long-distance rail decision unlawful; Deutsche Bahn does not have to keep capacity free for competitorsFAZ · Spiegel · Handelsblatt · Zeit
  • Bundestag panel orders a special review in the Hanning case; the BND is said to have approved the former chief of staff’s side jobHandelsblatt · Spiegel · Tagesspiegel
  • Lower Saxony SPD caucus leader Stefan Politze resigns after the state parliament lifted his immunityZeit · Spiegel · Tagesschau
  • NATO announces a nuclear weapons exercise, and the Bundeswehr takes partSpiegel · Zeit · Handelsblatt
  • US prosecutors expand the indictment against Maduro and his wife to include a torture chargeFAZ · Zeit · Spiegel
  • Audi wants to negotiate further savings with the works council and invokes the bad-weather clauseZeit · SZ · Spiegel · Handelsblatt
  • WWF: wildlife populations worldwide have shrunk by 73 percentSpiegel · SZ · Zeit · Tagesschau
  • Samsung signals record profit, TSMC raises quarterly revenue by 51 percentHandelsblatt · Tagesschau
Seven minutes every evening, one front page — see About

Unverified — what we could not confirm

“The US will attack Iran before the midterms.” Axios, NBC and “The Atlantic” report on options; Trump denied attacks before November 3 in the afternoon but did not rule them out afterward. A decision is not documented.
“The CDU caucus in Magdeburg is splitting.” Several outlets report the danger of a split and internal calls for Schulze to resign; neither is publicly confirmed.
“33 people died in the bus attack in Kramatorsk.” The military governor reports 30 dead and 18 injured. The figure of 33 comes from an Austrian outlet; neither can be independently verified.
Glossary · dotted words — economics, law, security and science terms explained in the context of the story. The list grows every day.
INSIDEAfter four hours of coalition committee talks: a joint pledge against extremism, but no timetable for the reformsDomestic politicsThe federal government raises its 2026 growth forecast to 1.3 percent. For 2027 it expects 1.1 percent and three percent inflationEconomy · Business cycleCDU in Saxony-Anhalt faces a severe test: lawmakers demand Schulze’s resignation, Radtke calls for expelling dissenters from the partyPolitics · Saxony-AnhaltThe DAX closes 1.18 percent lower at 24,807 points. Brent jumps above $105 until Trump rules out attacks on Iran before the midtermsMarkets · EnergyNew British prime minister Burnham visits Merz: the friendship treaty enters into force, both countries want to strengthen cyber defense and sabotage defense togetherForeign policy · Europe