As Germany enters a pivotal year, the coalition government led by Chancellor Friedrich Merz faces a complex landscape of critical national challenges that will reshape the country's social and security infrastructure.

The government's pension reform takes center stage, with a massive €128 billion budget allocation aimed at stabilizing retirement systems amid an aging population. A newly formed commission will develop fundamental reforms by mid-2026, exploring innovative approaches like potentially eliminating fixed retirement ages and basing pensions solely on years worked.

In a dramatic shift toward national defense, Germany is launching an ambitious military recruitment strategy. Starting in 2026, all citizens 18 and over will receive questionnaires focused on military service potential, with the government seeking to dramatically expand Bundeswehr personnel from 184,000 to potentially 270,000 over the next decade. If voluntary recruitment falls short, the government has not ruled out reinstating mandatory conscription.

Political dynamics are equally charged, with the far-right Alternative for Germany (AfD) emerging as a powerful opposition force. Regional elections in Saxony-Anhalt and Mecklenburg-Western Pomerania could see the AfD polling around 40%, creating significant tension for centrist democratic parties and challenging long-standing political alliances.

Migration policy remains another critical focus, with Interior Minister Alexander Dobrindt implementing increasingly strict border control measures. The European Union's recent agreement on tightening asylum policies signals a coordinated approach to managing immigration, reflecting Germany's commitment to more controlled and regulated international movement.

As these multifaceted reforms unfold, Germany stands at a critical juncture—balancing social welfare, national security, and political stability in an increasingly complex global environment. The decisions made in 2026 will likely reverberate through the nation's social and political landscape for years to come.