What 2024 brings for Germany

The catering industry sees price hikes, as the value-added tax (VAT) in restaurants and other catering establishments rises from 7% to the standard 19%. The government is rolling back its reduction from 2020, which was intended to help the industry recover after the COVID-19 pandemic. There's been an outcry in German tabloids at the prospect of schnitzel becoming unaffordable in restaurants.

The CO2 levy for burning fossil fuels like oil or natural gas rises from €30 per ton to €45. This affects the prices of diesel and gasoline at the pump. Caps on electricity and gas prices were terminated early, at the end of 2023, following November's Constitutional Court ruling that tore a hole into the budget. The sales tax on natural gas heating is raised again from 7% to 19%.

Air travel is likely to become more expensive in 2024, as the German government increases the ticket tax. All passenger aircraft taking off from German airports will be affected, as a 50% increase is now on the cards. And the road toll on German motorways, which previously applied only to vehicles with a total weight of 7.5 tons or more, will now be extended to trucks from 3.5 tons.

The Skilled Immigration Act, which has been in force since November 2023, will be extended from March 2024. Skilled workers who want to come to Germany will receive a residence permit for 24 months, instead of 12, in order to take part in job training. An extension is possible for up to three years. Part-time work alongside the qualification measure will be allowed for up to 20 hours per week.

Every newly installed heating system must be powered by at least 65% renewable energy. Initially, this will only apply to buildings in new housing development areas. A first draft of this Building Energy Act (GEG), aimed at gradually phasing out oil and gas heating systems, triggered months of acrimonious debate which took its toll on the popularity ratings of Economy Minister Robert Habeck.

January will see the founding of a new party: Sahra Wagenknecht, a former lawmaker with the socialist Left Party, intends to forge a new political path. Opinion polls predict her party will attract voters from the far right. But the far-right populist Alternative for Germany (AfD) is unfazed, and expects to triumph in elections for the European Parliament and three eastern German states.

The welfare benefit known as "Bürgergeld" (citizen's income), will rise by 12% to €563 ($625) per month for single people. The minimum wage will rise from €12 to €12.41 per hour and the upper limit for tax-free mini-jobs will increase from €520 to €538 per month. In July, pensions are set to rise, presumably by 3.5%.

On April 1, possession and consumption of cannabis will be decriminalized for adults, subject to restrictions. The possession of up to 25 grams of cannabis for personal use will be permitted, as will the cultivation of up to three flowering cannabis plants. The legal framework, strongly opposed by the center-right opposition, has been ridiculed by critics for its excessive detail and exceptions.

In reaction to rising tensions on NATO's eastern borders, the German military has been given a boost. Defense Minister Boris Pistorius is the country's most popular politician. Starting in the first half of 2024, the Bundeswehr will begin stationing a permanent brigade in the Baltic state of Lithuania as part of NATO.

In the summer, Germany will once again become a wall-to-wall football fest as the country hosts the 17th edition of the UEFA Men's European Championships. Twenty-four nations will compete in 10 different cities in the monthlong competition from mid-June to mid-July. One of those cities is Leipzig — marking the first time a Euros match will be played in the former East Germany.