Germany news: Nvidia CEO optimistic about EU's AI economy

October 21, 2026

German imports from Russia plunge, but not to zero

German trade with Russia collapsed following the 2022 full-scale invasion of Ukraine, especially due to the decision to cut all imports of Russian gas. However, some trade has continued.

According to the German Federal Statistical Office (Destatis), German imports of Russian goods were down by 96.4% in the first half of 2026 compared with the same period in 2021.

This amounted to €500 million ($561 million) in 2026, down from €15 billion. German exports to Russia were also down, but still significant, reaching €3.4 billion in the first six months of 2026. However, this was about a quarter of the exports in the same period in 2021.

Pharmaceutical products made up more than 40% of German exports to Russia, with machinery, food and animal feed also being exported in smaller quantities.

Published October 21, 2026last updated October 21, 2026

Nvidia CEO urges Europe to build more data centers

Jensen Huang, the head of chip manufacturing giant Nvidia, was speaking at a company conference for developers and investors in Berlin's Tempodrom auditorium on Wednesday.

He was seeking to encourage Europe to build out its data center infrastructure and touted Nvidia's modular tools to help speed up that process.

"Europe's AI economy is starting, and it's accelerating, and it's great to see," Huang said.

He promoted a new design for a ready-made modular computing center that comes in a box akin to a shipping container and that could make it possible to construct a data center in a matter of days. Huang said it "will change the way people build AI centers."

Nvidia has invested $10 billion (€8.9 billion) in European startups over the past year, the Nvidia boss said.

Europe has fallen behind the US and China in terms of building up data centers and is currently home to around 5% of the world's AI computing capacity in comparison to 75% in the US. This capacity is required to train AI models and its lack is seen as a major obstacle for European developers.

Most current data centers are reliant on Nvidia GPUs to run.

October 21, 2026

Financial Ministry admits mistake, says tobacco tax coming January 1 as planned

A spokesperson for Germany's Federal Financial Ministry on Wednesday addressed confusion surrounding the implementation of a new tobacco tax saying, "The tax increase in the law's wording was approved to go into effect on January 1, 2027, that remains the case."

The spokesperson confirmed that the mix-up over when the new law would take effect resulted from a technical error that put the law on the books immediately rather than January 1 as intended.

The issue stemmed from a mistake in the government's original writing of the law. 

Customs officials have reportedly been informed and the Financial Ministry's website makes clear that the price increase will not be charged until the beginning of the new year.

October 21, 2026

German youth plans France-style mass protests

"Gen Z regelt" — or Gen Z's Got It — a youth initiative, has called for mass protests in 21 cities across Germany on Saturday, October 31; including Berlin, Cologne, Hamburg and Munich.  

Thousands are expected to participate in demonstrations protesting "broken schools and austerity," as well as the cost of living, social injustice, military conscription and climate change.

French protests that exploded in violence and rampant destruction of private and public property this weekend also grew out of student frustration over the national school system and soon included numerous unions, groups and individuals voicing anger over a number of issues.

Gen Z regelt's website clearly states that the initiative is "against all violence," whether directed at people or property. 

Police say they are "vigilant and relaxed," adding that they intend to protect people's right to congregate and express their opinions.

Still, images of massive damage and public violence from France, Italy and Spain have raised concerns among domestic policymakers and police, who have warned against allowing the protests to be hijacked by left-wing extremists.

Andreas Roßkopf, head of the German Federal Police's GdP union, made clear that officers would deal harshly with riots and rioters, telling the Rheinische Post newspaper on Wednesday, "State, but also federal police, will offer a firm and decisive response" to any trouble.

Roßkopf also warned that radicals and extremists could insert themselves among demonstrators in order to "attack police" or "simply be destructive."

October 21, 2026

Bundesbank forecasts German growth for Q4

The Bundesbank, Germany's central bank, has said it is expecting to see an uptick in growth for Europe's biggest economy in the fourth quarter.

"German economic output is likely to improve again markedly in the fourth quarter," the bank said in its monthly report on Wednesday. "However, the future economic recovery depends, not least, on the development of the war in the Middle East."

The optimistic outlook follows a dip in the third quarter, which the bank chalked up largely to this summer's drought that caused such low water levels in the Rhine River, an artery in western Germany for industry, that most ships could not travel.

"The low water levels are also likely to continue to have a negative impact on foreign trade via European ports as a result of restrictions on inland water transport," the bank wrote.

The forecast will be welcomed by the Merz government as it has struggled to boost the economy after two consecutive years of recession followed by weak growth in 2025.

October 21, 2026

Merz: EU doesn't want trade war with China

German Chancellor Friedrich Merz has said he does not think Europe is on course for a trade war with China while acknowledging what he called "unfair practice" on the part of Beijing.

Speaking at a business conference in Berlin, Merz said the imbalance did not mean "the beginning of a war, of a trade war with China. We are looking for peaceful solutions, but the level for that is fair trade."

The German chancellor has been pushing for the EU to be better prepared for trade disputes with China, including calling for a means to quickly exclude non-EU countries from the EU's single market if they flood it with cheap goods.

Merz said the EU needs to be able "to protect our markets and defend ourselves against those who don't play by the rules."

"Anyone who disrupts the functioning of the markets through unfair subsidies, overcapacities, aggressive pricing, or artificially undervalued currencies must expect a response," he said.

That includes tools that "enable us to respond swiftly and vigorously to targeted attacks on our industry and supply chain, with the idea being that in the best case we will not have to use it."

October 21, 2026

Ifo Institute questions savings target of parental allowance reform

Germany has a rather generous parental allowance system in comparison to many countries, with parents being able to take off 14 months, if each parent takes at least two months off, with the government paying up to €1,800 (just over $2,000) a month during that period.

However, this system has become the subject of a planned reform under the government of Chancellor Friedrich Merz.

The plan is to reduce the maximum amount of full-time paid parental leave to 12 months. With three months each reserved for both parents and the remaining six months free to be divided up however the parents choose. It also raises the minimum payment from €300 to €330 and the maximum from €1,800 to €1,900.

The government's aim is to make cuts to help the Ministry for Family Affairs reach its savings target of €1.6 billion, while also encouraging more fathers to take parental leave. Currently, fewer than half of fathers in Germany take parental leave.

Now the Ifo Institute for Economic Research has cast doubts on the government's savings plan.

"The savings target and the goal of increasing fathers’ participation in the planned parental allowance reform are at odds with each other. The higher the number of fathers who are motivated to participate by the reform, the less the government saves," Ifo researcher Kyra Puteanus said.

The institute estimates savings of around €880 million from November 2027, when the reform comes into effect. However, if more fathers, who generally earn more and thus are able to request the highest payment, do take up the parental leave, this will quickly reduce the savings, with Ifo predicting that even if the uptake by fathers only increases by 1%, savings will fall to €597 million. An increase of 3.1% would undo any savings from the reform, according to the institute.

"Since 2010, however, the share of fathers receiving parental allowance has almost doubled. A rapid increase can therefore not be ruled out, especially if months are otherwise forfeited," Ifo researcher Franziska Nuernbergk said.

October 21, 2026

IDF says it killed Hamas member involved in abduction of German dual national

The Israel Defense Forces (IFD) said in a post on X that they have killed Tamer Mohammad Ibrahim Al-Zabaq, a member of the Hamas terror group who was involved in the October 7 attacks.

The post said that al-Zabaq had been one of the men responsible for the abduction of Shani Louk, a dual German-Israeli national.

Louk was initially thought to have been taken hostage following the Hamas-led attacks but it was later confirmed that she had been killed.

In the immediate aftermath of the terror attacks, pictures and videos shared online showed a young woman, believed to be Shani, lying face down in a pick-up truck driven by militants. It was unclear from the footage whether she was alive.

The IDF also accused Al-Zabaq of operating to "restore Hamas' military capabilities, in systematic violation of the ceasefire."

"The terrorist was eliminated in order to remove the threat he posed," the IDF said.

The claims in the X post could not be independently verified.

Israel has carried out numerous deadly strikes on Gaza since the ceasefire came into effect just over a year ago.

October 21, 2026

Merz calls on Trump to make sure South Africa is at G20

German Chancellor Friedrich Merz, addressing the Business Global Dialogue summit in Berlin on Wednesday, renewed calls for US President Donald Trump to invite South Africa (a G20 member) to the upcoming G20 summit that he will host in Miami this December.

"Whoever talks about the future of the global economy must include all important partners. Of course Africa belongs at the table," he said, adding: "The African Union is a G20 member, as is South Africa. That is why I urgently insist that South Africa be represented at the G20 summit."

Merz made a similar plea last year, when Trump angrily insisted that he would not invite South Africa to the annual summit of the 20 leading industrial and emerging economies.

Trump has accused South Africa of committing genocide on white farmers and dismissed South African pushback against his repeated claim. The anti-immigrant president also took the unusual step of offering South Africans political asylum in the US — as long as they are white.

The US President is apparently less bothered by wars of aggression, extending an invitation to President Vladimir Putin to come to Miami, despite Russia being thrown out of the G8 — now G7 — over its 2014 invasion and annexation of Ukraine's Crimea.

Beyond his plea for South Africa's inclusion, Merz said he would travel to the US with what he called a "Miami Growth Agenda" aimed at slashing bureaucracy, pushing structural reforms and making investment easier.

"Those" he said, "are the prerequisites for new economic growth and prosperity, not only in Germany, but globally."

October 21, 2026

Russia arrests German national, says he's a 'mercenary' — reports

Russian FSB agents have arrested a German national, accusing him of being a mercenary under contract with the Ukrainian army.

"The Federal Security Service of the Russian Federation has detained a German citizen who is a serving member of the Armed Forces of Ukraine," said a statement cited by Russian news agencies.

The FSB says the man, whom they described as a sniper, previously fought in Afghanistan and Syria as well as in Ukraine between 2016 and 2018. 

They say he arrived in Ukraine last November and signed a three-year contract with the Ukrainian army before deserting over unpaid wages.

Last week, the FSB arrested a Swedish national whom Russian authorities also accused of fighting on Kyiv's behalf.

Russia has arrested hundreds of foreign nationals that it accuses of "espionage," "sabotage" or "treason" to long prison sentences since it began its invasion of neighboring Ukraine. 

A number of foreign nationals have also been jailed over supposed "mercenary activity." 

October 21, 2026

Feminist Alice Schwarzer announces closure of Emma magazine

Alice Schwarzer, Germany's most famous feminist, told DPA on Wednesday that the December 8 issue of her magazine Emma would be its last.

Schwarzer said despite dwindling circulation, the magazine is still turning a profit but the 83-year-old said "we are leaving because we think: Enough is enough!" 

She said that Emma had stood up against "quite a bit of nonsense in the name of feminism," adding, "we are exhausted."

The first issue of Emma hit newsstands on January 26, 1977, with Schwarzer saying hostility against women in "men's media" had driven her to found a magazine that was produced by women, for women.

Among the controversial stances that Schwarzer has taken over the years, two that hurt sales were her seemingly pro-Russian calls for a quick peace deal with Ukraine after the start of Moscow's 2022 invasion — leading 20% of readers to cancel subscriptions — and her perceived hostility on transgender issues.

Schwarzer wholly rejects accusations that she has made transphobic, racist and misogynistic statements.

Emma's extensive archive will now be transferred to the German Literature Archive in Marbach, where it will be publicly accessible.

Asked about what people may not understand looking back, Schwarzer pointed to the hardships that women had to overcome in order to secure the rights enjoyed by women today.

October 21, 2026

Tobacco tax introduced months early

Germany's Finance Ministry said that a "technical error" had led to the early introduction of a steep tax hike on tobacco products.

The hike received final parliamentary approval on Friday and had been scheduled to go into effect at the turn of the year.  

Instead the changes officially gazetted on Tuesday stated that they would come into force on Wednesday.

"A technical error occurred in the documents regarding the effective date," said the Ministry, adding that a correction had been initiated.

The changes are expected to pump some €12 billion ($13.5 billion) in added tax revenue over the next four years.

However, tobacco companies will be unable to pay the higher rate due to the fact that new tax stamps are not yet available.

Currently, a 20-pack of cigarettes costs around €8-€10. The Finance Ministry expects that price to rise to between €12 and €14 per pack. 

Roughly 1-in-5 people (19%) smoke in Germany, with around 130,000 dying of tobacco-related illness each year. 

Although health experts and politicians hope that higher prices will deter people from smoking, the German Customs Union and the tobacco industry warn that smokers could simply turn to contraband cigarettes instead.

October 21, 2026

Welcome to our coverage

Guten Morgen from the DW newsroom in Bonn where we start the day looking at a cigarette tax hike that has gone into effect months before scheduled after "a technical error."

The price hike was supposed to happen at the beginning of 2028 but will now start today.

In Strasbourg, France, Alternative for Germany (AfD) co-Chair Alice Weidel will hold a press conference announcing what she has billed "A New Deal for Europe." AfD EU Parliamentarians Rene Aust and Alexander Sell will accompany her. 

Stay tuned for this and more from DW …