(Repeat from the previous evening)BERLIN - The leaders of the CDU/CSU and SPD have not yet reached an agreement on a further reduction in the electricity tax.

(Repeat from the previous evening)

BERLIN (dpa-AFX) - The leaders of the CDU/CSU and SPD have not yet reached an agreement on a further reduction in the electricity tax. However, as stated in a final paper following approximately five hours of deliberations by the coalition committee, further relief measures – especially for consumers and the entire economy – are to follow as soon as "financial leeway exists." This means that this has been postponed to an indefinite date.

However, a decision was made to expand the mother's pension, which is to be implemented on January 1, 2027. If technical implementation is only possible at a later date, the mother's pension will be paid retroactively, the outcome paper states.

energy

The coalition committee reaffirmed the cabinet's decisions from last week. The cabinet had initiated relief on network charges effective January 1, as well as the abolition of the gas storage surcharge for gas customers. The electricity tax reduction for industry, agriculture, and forestry is to be "permanent."

The fact that the electricity tax would not be reduced for everyone—contrary to the announcement in the coalition agreement—had sparked widespread criticism. Chancellor Friedrich Merz (CDU) and Federal Finance Minister Lars Klingbeil (SPD) justified the decision with budgetary constraints.

Billions in costs

The key question is how to finance a reduction in electricity tax for all businesses and consumers. According to the Federal Ministry of Finance, this would cost an additional €5.4 billion next year. To achieve this, the coalition would have to make concessions on other projects.

Before the meeting, Merz had promised a solution. "If we can do more for private households, then we will," the CDU leader said on the ARD talk show "Maischberger." That won't happen for the time being.

Decided relief

In their final report, the CDU/CSU and SPD calculate the relief the existing cabinet resolution will bring. Network charges, a component of the electricity price, are to be reduced, and the gas storage surcharge for gas customers is to be abolished. Together with the further reduction in electricity tax for manufacturing companies, this will result in annual relief of around €10 billion for consumers and businesses, they say.

"These measures, agreed upon as a first step by the coalition to reduce energy prices, will already provide all consumers, private households, and families with savings of up to 3 cents per kilowatt hour (kWh)," the paper states. This means a savings of up to 100 euros per year for a family of four.

In the coalition agreement, the CDU/CSU and SPD announced: "We want to permanently relieve companies and consumers in Germany by at least five cents per kWh with a package of measures."

The government justified the decision on the electricity tax by stating that, in view of the weak growth, relief for industry was a priority in order to secure jobs.

Maternity pension

The expanded maternity pension is scheduled to begin on January 1, 2027—one year earlier than initially expected. "If technical implementation is only possible at a later date, the maternity pension will be paid retroactively," the CDU/CSU and SPD paper states.

The pension insurance company recently informed the members of the committee in writing that implementation would not be possible until the beginning of 2028 due to comprehensive individual eligibility assessments. Therefore, those affected will likely receive the money for 2027 retroactively.

What is the extended mother’s pension?

The expanded mothers' pension—a project promoted by the CSU—would extend the child-rearing period in statutory pension insurance for children born before 1992 by six months to three years. As early as June, it was stated that the pension insurance system would need two years after the promulgation of the law for technical implementation. The coalition agreement does not specify a date for this guarantee of "appreciation and recognition for all mothers." It is to be financed through tax revenue.

Pension package

"The components of extending the pension threshold and the mother's pension will be implemented as a first step with the current 2025 pension package," the coalition partners affirm. According to the draft, Federal Labor Minister and SPD leader Bärbel Bas estimates additional spending for her first pension law, initially amounting to €4.1 billion starting in 2029. Costs are expected to rise to €9.4 billion in 2030 and €11.2 billion in 2031.

The extension of the limit line – which is particularly important to the SPD – is to be extended beyond the current year until 2031. Otherwise, pensions would inevitably decline as more baby boomers enter retirement.

"The second part of the pension package, consisting of the active pension, the early start pension, and the company pension strengthening law, will be approved by the cabinet in the fall and is to be implemented (with the exception of the early start pension) by January 1, 2026," the coalition continued.

Central Committee

The Coalition Committee serves as the central planning body of the new coalition government and meets at least once a month. It deals with "matters of fundamental importance that must be agreed upon between the coalition partners and achieves consensus in cases of conflict," as stated in the coalition agreement.

The committee consists of ten men and only one woman, which has drawn much criticism. Saskia Esken, SPD leader, was present at the first meeting. This time, her successor, Bas, who was elected party leader over the weekend, made her debut on the committee.

Free at the Sparkassen Forum instead of the Chancellery

Not present this time was Chief of Staff Thorsten Frei (CDU), who had prepared the coalition committee together with SPD State Secretary Björn Böhning. Instead, Frei participated in the Savings Banks Forum in Donaueschingen, in his constituency in the Black Forest. The event was planned a year ago – long before the federal election, according to those close to him. Frei was represented by Michael Meister, Minister of State in the Federal Chancellery for Relations between the Federal Government and the States.