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Delayed delivery: German postal services come under attack – DW – 07/25/2025

Delayed delivery: German postal services come under attack – DW – 07/25/2025

DW3 days ago
German consumer complaints about DHL and Deutsche Post reached record highs in the first half of 2025. Letters and parcels are getting damaged, delayed, delivered to the wrong address or just disappear.
The German Federal Network Agency received almost 23,000 complaints in the first half of this year — that's up 13% on the same time last year, which was also a record. Almost 90% of complaints relate to market leader Deutsche Post / DHL.
Up to 2022, people in Germany were largely happy with their mail service, but then jobs were cut, prices raised and complaints began piling up.
Damaged parcels, mail delivered to the wrong house — or not at all — and disastrous delays have been sending the country's blood pressure soaring.
"For months on end here, it was drip, drip, drip. First, there would be something, then nothing at all. And then something would arrive and then nothing again. It really wasn't good," Patrick Gröne told German public broadcaster .
He had ordered for some live ladybug larvae to fight the aphid problem blighting his house plants. But four weeks later when the much-awaited package finally arrived, the larvae were all dead.
He got a replacement batch — eventually. Again, none of the larvae were alive.
Another case that has been widely reported in the German media involves an eighty-two-year-old woman who tried in vain to get an ultra-fast delivery to a North Sea island where she was vacationing. Instead of getting the mobile phone that she had forgotten at home the next day, it finally turned up six working days later.
Germany's service sector union Ver.di and communication workers' union DPVKOM are blaming the difficulties on ongoing restructuring and waves of layoffs.
And those are not expected to end any time soon. In March, Deutsche Post announced that it would be cutting another 8,000 jobs by the end of the year to save a billion euros ($1.17 bn). Last year, turnover rose to €84.2 billion, but operating profits sank to €5.9 billion.
DHL delivery workers are often so pressed for time that they tend to leave parcels for an entire apartment block with neighbors living on ground or first-floor flats.
The company is keen to play down the problem. It says the number of complaints is small in relation to the volume of letters and parcels transported by Deutsche Post and DHL: Over twelve billion letters and 1.8 billion parcels in 2024.
"In a company with 187,000 employees and around 50 million items processed per day, mistakes can never be completely ruled out," a spokesperson told public broadcaster . Nevertheless, the company is keen to stress that it is constantly working to improve quality.
But as well as the complaints lodged with the infrastructure watchdog, BNetzA, Deutsche Post itself logged some 420,000 last year.
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Deutsche Post blames this year's specific woes on recent heatwaves — which required workloads to be cut — and union walkouts about job cuts. Moreover, it said not all customers are aware of recent changes in the postal laws.
These mean that the company can now take up to three working days to deliver letters. Up to January 1, 2025, they were still obliged to deliver 80 percent by the next working day.
So maybe it's all about expectations? Certainly, if things go on like this, Germany's Deutsche Post and DHL are set to have a record year of the worst kind, beating out 2024's total of 44,406 complaints. While you're here: Every Tuesday, DW editors round up what is happening in German politics and society. You can sign up here for the weekly email newsletter, Berlin Briefing.
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Will EU lose out as SE Asia strikes trade deals with US? – DW – 07/28/2025
Will EU lose out as SE Asia strikes trade deals with US? – DW – 07/28/2025

DW

timean hour ago

  • DW

Will EU lose out as SE Asia strikes trade deals with US? – DW – 07/28/2025

New trade deals between the US and key Southeast Asian economies are reshaping global commerce. While the EU could lose market share, it's also possible that these agreements end up bolstering Brussels' negotiating hand. Vietnam, Indonesia, and the Philippines have struck separate deals with the White House in recent weeks to significantly reduce the tariffs the US will levy on their exports, as the August 1 deadline looms. To access the market of the world's largest economy, all three Southeast Asian states have pledged to reduce their tariffs on US goods to nearly zero and increase their purchases of American products. In some cases, this may negatively affect European exports to Southeast Asia. However, most analysts believe that zero tariffs for the US could work in Europe's favor by pressuring Southeast Asian states to also lower their tariffs on European goods. On Sunday, Washington and Brussels reached their trade deal framework, with a US tariff on EU exports set at 15%, marking the end of a monthslong standoff between two of the world's largest economies. To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video On July 22, US President Donald Trump announced that a 19% tariff would be applied to goods from the Philippines, up from the 17% rate set in April, while Manila agreed to eliminate levies on US exports. Philippine President Ferdinand Marcos Jr. said that his country would import more soy, wheat, pharmaceutical products, and cars from the US. Days earlier, the US and Indonesia, Southeast Asia's biggest economy, struck a deal in which the US lowers the duties on Indonesian exports to 19%, down from a threatened 32%. Jakarta also agreed to eliminate tariffs on almost all US goods and scrap all non-tariff barriers facing American firms, including recently introduced pre-shipment inspections on imported goods and local content requirements, which had prevented Indonesia-based companies from using certain imported products in their manufacturing processes. According to Trump, Jakarta will also buy $15 billion (€12.9 billion) in US energy, $4.5 billion in American agricultural products, and 50 Boeing jets. Furthermore, Indonesia will remove restrictions on exporting industrial commodities, including critical minerals, to the US. Such restrictions have been in place for years, enabling Indonesian firms to process raw minerals locally and produce higher-value-added products. Earlier in July, Vietnam secured a deal that will see the US imposing a 20% tariff on Vietnamese goods, a sharp drop from the 46% announced in April, as well as zero tariffs on products the US exports to Vietnam. "Vietnam will do something that they have never done before, give the United States of America total access to their markets for trade," Trump said on July 2 in a social media post after agreeing to the deal with Hanoi. It remains to be seen whether other Southeast Asian countries currently negotiating with the US will follow a similar approach. Thailand has stated its intention to maintain tariffs on agricultural imports, and Malaysia is reportedly pushing back on some of Washington's demands. US exports to Singapore are already tariff-free. Initially, the "reciprocal tariffs" were scheduled to take effect on July 8, but the White House delayed the deadline until August 1. To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video Even though the US looks set to considerably lower the tariffs on Southeast Asian exports from the initially threatened rates, settling around the 20% mark, they are likely to disrupt some regional trade links with the US, the largest export market for most Southeast Asian goods. This could be a boon for Southeast Asian exports into Europe, where import tariffs will be lower. However, it's unclear whether European exporters would benefit, too. According to a report last week by , around 12% of the EU's exports to Indonesia and Vietnam are at risk following the US's signing of bilateral agreements with both countries. In Vietnam, this could affect $1.5 billion worth of European exports. "If products bought from the US replace products purchased from the EU, that will negatively impact European exports to the region," Daniel Balazs, research fellow in the China Programme of the S. Rajaratnam School of International Studies at Singapore's Nanyang Technological University, told DW. "However, the negative impact is likely to be limited, because Southeast Asian nations' interest is to maintain diversity in their trade relationships to avoid overreliance on a single actor," he added. Alfred Gerstl, an expert on Indo-Pacific international relations at the University of Vienna, noted that in only a few sectors — particularly mechanical engineering and the chemical industry — there is direct competition between US and European companies. But he told DW that some EU companies may reconsider their plans to relocate their production base to Southeast Asia due to the now higher US tariffs on goods coming from these countries. In 2024, EU-Vietnam trade was worth €67 billion, of which €12.3 billion was in European exports to Vietnam, according to data from the European Commission. Indonesia imported €9.7 billion worth of goods last year, while the Philippines imported €7.7 billion. Overall, the EU exported approximately €94 billion worth of goods to the Association of Southeast Asian Nations (ASEAN) region in 2022. Most European exports to Vietnam already benefit from zero tariffs, thanks to the EU-Vietnam free trade deal, which came into effect in 2020, so the zero-tariff policy on US exports will have limited impact, Khac Giang Nguyen, a visiting fellow at the ISEAS–Yusof Ishak Institute in Singapore, told DW. To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video Competition may intensify, especially in sectors such as agriculture, where American goods may gain new ground, Nguyen added, although Brussels might also use the US tariff deals as leverage to encourage Hanoi to accelerate tariff cuts under the EU-Vietnam trade deal. Chris Humphrey, executive director of the EU-ASEAN Business Council, said that there will now be pressure on Southeast Asian states to make similar tariff offers to other trading partners, including the EU. "It will certainly strengthen the EU's position in ongoing FTA negotiations with ASEAN countries," he told DW. A deal with Thailand is expected to be finalized this year, while talks with Malaysia recommenced in January and with the Philippines in March 2024. Indonesian President Prabowo Subianto and European Commission President Ursula von der Leyen met in July to express their hope of signing the economic agreement in September, following nearly a decade of negotiations. "Indications are that in the case of Indonesia, the EU will get zero tariffs on at least 98% of tariff lines," Humphrey noted. The Southeast Asian countries with which the EU isn't negotiating trade deals — Brunei, Cambodia, Laos, and Myanmar — currently import relatively little from European markets.

Housing crisis: Germany plans 'turbo' construction boost – DW – 07/28/2025
Housing crisis: Germany plans 'turbo' construction boost – DW – 07/28/2025

DW

time2 hours ago

  • DW

Housing crisis: Germany plans 'turbo' construction boost – DW – 07/28/2025

Germany has a desperate shortage of affordable housing. The government now plans to take a "crowbar" to construction law to help get more homes built at "turbo" speed. "Building and housing is the social issue of our time," Germany's new Construction and Housing Minister Verena Hubertz told public broadcaster in May when she announced her plan to help ease the shortage of affordable housing. With the cabinet set to present its budget proposal for 2026 this Wednesday (30.7.2025), spending on housing is one of the focal points. In a country where it can take longer to get approval for a development project than it does to actually build it, Hubertz said she wanted to give local authorities a "crowbar" to get around labyrinthine urban planning laws. That crowbar labeled "Bau-Turbo" (construction turbo) is a new paragraph (§ 246e) to be inserted into the German Building Code. If the legislation is passed in the fall, municipalities will be given the opportunity to approve construction, change of use and renovation projects that deviate from the provisions of the Building Code if those projects serve the construction of new residential buildings. Planning applications will also be automatically approved after two months unless vetoed by the municipality. To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video Building regulations vary between each of the 16 states and among municipalities, which has resulted in an ever-growing patchwork of rules governing everything from the number of electric sockets per room to the shape and color of roofs. The Construction Ministry estimates its legislative amendment, to be passed by the Bundestag in fall, will save companies, citizens and local authorities around €2.5 billion ($2.9 bn) a year. Tim-Oliver Müller, the managing director of the Federal Association of the German Construction Industry (HDB), said he welcomed the government's plans but warned that housing construction "would not pick up again overnight." "The law alone will not result in a single new apartment, but it will make it easier for local authorities to approve them," Müller told DW. The construction industry has been hit by a "melange of crises," he said, largely as a result of Russia's full-scale invasion of Ukraine, rising energy prices, the increased cost of materials such as concrete and steel, inflation and a jump in interest rates from below 1% to between 3% and 4%. Müller is convinced that the new changes to the law would not lead to a reduction in quality — standard regulations, for example, with regard to fire safety and structural integrity,which remain in place. The new legislation is "purely a creation of possibilities, for example, with regard to building extensions or changing the designation of land from commercial to residential, something that was not previously possible," Müller explained. To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video Environmentalists have expressed concern about the easing of planning regulations because they fear that green spaces will be built on as new development projects are waved through with less time for local residents to object. "Only with green spaces can we buffer [heatwaves]. Because these green spaces provide active cooling," Stefan Petzold from the nature conservation association NABU told . Another person concerned about hot air is Matthias Günther, the head of the Pestel Institute, which conducts research on areas like the economy and housing for the public and private sectors. He described the new legislation as "a lot of hot air" that will "not achieve anything in the short term." "Additional paragraphs and sections will be added to the Building Code, creating more bureaucracy. Some things will require the consent of the municipality and, especially when it comes to building, they often have problems getting a majority because there's always someone who doesn't want it," Günther told DW. He says that what Germany really needs is an economic stimulus package for housing construction starting in the fall and accompanied by a loan program with interest rates fixed at 2% for the next 20 years. "The city would essentially pass on its more favorable credit conditions. It wouldn't cost that much. Everyone I talk to says that if they could get financing at 2% then they would start building again," economist Matthias Günther believes, adding that a similar scheme had already proven successful in Poland. To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video The desperate lack of housing is one of the main reasons why rents have been exploding in big German cities, says Bernard Faller from the Federal Association for Housing and Urban Development (VHW). More than half of the population of Germany lives in rented accommodation — the highest share in the European Union. While Germany has some of the strongest tenant protection laws in the world, Faller said those laws serve to protect existing tenants and work against those who want or need to move — particularly young people and large families. "The problem remains the same: there are too few homes to meet demand," he told DW. The construction turbo plans are a "very exciting experiment," according to Faller. "Until we come up with something better, and I can't think of anything better, the key to easing the overheated housing market, to curbing rising rents, is for more affordable housing to be built," he said. Germany will need approximately 320,000 new homes every year until 2030, according to the Federal Institute for Research on Building, Urban Affairs and Spatial Development (BBSR). The previous federal government, which lost its majority in the February 2025 election, had promised to build 400,000 homes a year. But by 2024, that figure was just 251,900 — 14.4% down on the previous year. The new coalition of the center-right bloc of Christian Democrats and Christian Social Union (CDU-CSU) and center-left Social Democrats (SPD) is planning to boost the Construction Ministry's budget for 2025 to €7.4 billion in 2025 from €6.7 billion the previous year. This money will be invested in the construction of social housing – subsidized apartments for low-income families, projects for climate-friendly construction, turning commercial into residential areas and the promotion of home ownership for young you're here: Every Tuesday, DW editors round up what is happening in German politics and society. You can sign up here for the weekly email newsletter, Berlin Briefing.

Berlin, Frankfurt and Munich: How expensive is life in Germany's big cities?
Berlin, Frankfurt and Munich: How expensive is life in Germany's big cities?

Local Germany

time2 hours ago

  • Local Germany

Berlin, Frankfurt and Munich: How expensive is life in Germany's big cities?

Housing is the biggest item on most peoples' monthly budget. It's also a cost that seems to be perpetually rising in most places. Between 2015 and 2023, house prices in the EU rose on average by about 48 percent, according to Eurostat. In Germany, house prices nearly matched the EU average, rising by 48.8 percent during that time. Rent prices have also seen continual growth in most German cities, although the rate at which rents have risen varies dramatically between different cities or even between neighbourhoods. But to understand the cost-of-living in a city, it's better to also take income into account – statistics like the rent-to-salary ratio or disposable income (after rent) give a more complete picture of how affordable a city is for most of its residents. The recent 'Mapping the World's Price Report 2025' by Deutsche Bank and numbeo included figures for net monthly salaries and housing costs in 69 cities worldwide. The Local takes a closer look at figures from Berlin, Frankfurt and Munich to get a sense of the affordability of Germany's biggest cities. Salaries In terms of monthly net salary (that's netto in German, or salary before tax and contributions) Frankfurt has the highest paid workers of the German cities. In fact, of the 69 cities included in Deutsche Bank's report, Frankfurt was ranked 10th for net salary, just behind Copenhagen and ahead of Los Angeles. Deutsche Bank's report listed all prices in US dollars – the average monthly net salary in Frankfurt in 2025 was listed as $4,512 (or €3,863 at time of writing). Munich was next of the German cities, with an average monthly net salary of $3,905 (€3,343) followed by Berlin at $3,565 (€3,052). READ ALSO: Munich vs Berlin - What's considered a good salary for foreign workers? Salaries have risen substantially in all three cities in the past five years, according to the report. The average net salary has gone up 36.4 percent more in Frankfurt compared to 2020, and up 33.5 percent in Berlin. In Munich salaries have risen less, but were still up by 18.6 percent in the last five years. Housing Costs Advertisement While, the average salary is highest in Frankfurt, housing prices are highest in Munich – and that's true for both the price per square metre to buy property as well as the average rent for three-bedroom or one-bedroom apartments. The average monthly rent price for a three-bedroom apartment in Munich is $3,377 in 2025 (or €2,891). In Frankfurt a comparable flat can be rented for $2,778 (€2,379) monthly, and in Berlin the same would go for just slightly less at $2,700 (€2,312). 'Altbau' (old building) apartments in the city of Munich. Photo: picture alliance/dpa/dpa-tmn | Karl-Josef Hildenbrand Rent prices rose by about 23 percent in Frankfurt in the past five years, according to the report, and by about 32 percent in Munich. But Berlin saw the steepest rent price rise since 2020, at more than 40 percent. READ ALSO: In Numbers - Rents soar in Germany's big cities despite the rent brake Rent prices for one-bedroom apartments were cheaper but comparable in their ranking across all three cities. According to the report the average one-bedroom flat in Munich costs about €1,506 monthly in 2025. In Frankfurt it's €1,313 and in Berlin it's €1,217. Disposable income & rent-to-salary ratio Average salaries and average rent prices give a rough sense of a city's affordability, but more meaningful to most people would be figures for disposable income – that is how much money is left over after rent is paid. This figure is calculated in the world price report based on the salaries for two working people who split the cost of rent for a three-bedroom apartment. Based on those figures, a working couple in Frankfurt would have the most disposable monthly income (€5,348) followed by a working couple in Munich or Berlin (€3,796 or €3,793 respectively). These figures should perhaps be taken with a grain of salt, as a couple with two full-time workers who earn the average salary and share an averagely priced apartment would be hard to find. But it gives a sense of where people tend to have more or less disposable income. Advertisement All three cities were ranked within the top 20, of the 69 included in the study, for disposable income. The report also notes that compared to New York city, the couple in Frankfurt would have 334 percent more disposable income. In Munich or Berlin they would have 237 percent more. However, the figure does not take tax and social contributions into account. READ ALSO: 'It wont solve all your problems' - An American on the pros and cons of moving to Germany Based on the same figures, Euronews calculated the rent-to-salary ratio across all of the European cities that were included in the report. (They used the average rent price for a one-bedroom apartment, effectively finding the rent-to-salary ratio for a single resident). Advertisement According to that calculation , residents in Munich spend the biggest portion of their income on rent, at about 45 percent. Single Berliners have to shell out about 40 percent of their hard earned euros for housing each month on average, and those in Frankfurt pay about 34 percent (or just over one-third) of their income for rent. All three cities were in the bottom half of cities compared. Lisbon had the highest rent-to-salary ratio – rents in the Portuguese capital are actually worth 116 percent of the average monthly net salary. In London the average rent is worth 75 percent of the average monthly net income.

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