Electricity tax, pensions, citizen's allowance - large sums of money were to be discussed at the second coalition committee.

For the time being, the electricity tax for consumers will not be reduced as much as originally promised. The leaders of the CDU/CSU and SPD failed to reach an agreement at their second meeting in the coalition committee.

In the coalition agreement, the black-red coalition promised: "To provide rapid relief of at least five cents per kWh (kilowatt hour), we will, as a first step, reduce the electricity tax for everyone as quickly as possible to the European minimum and reduce transmission network charges." The chairwoman of the German Social Association (SoVD), Michaela Engelmeier, spoke of a "fatal signal" after the summit meeting in the Chancellery.

However, the expanded maternity pension is expected to come sooner than initially expected—and will be paid retroactively in case of technical delays. This timetable is new.

Engelmeier criticized the coalition's intention to initially reduce electricity taxes only for industry, but not for consumers. "Especially in times of high living costs, they need tangible relief," Engelmeier told the German Press Agency.

As stated in a final report following approximately five hours of deliberations with Chancellor Friedrich Merz (CDU), further relief measures are to follow – especially for consumers and the entire economy. However, the coalition partners cite one crucial limitation: financial leeway must be maintained for this to happen.

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," states the outcome paper from the CDU/CSU and SPD.

The pension insurance recently informed the committee members in writing that implementation would not be possible until early 2028 due to comprehensive individual eligibility assessments. With the expanded mother's pension – a project called for by the CSU – the recognized child-rearing period in statutory pension insurance is to be extended in the future for children born before 1992.

"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. Federal Minister of Social Affairs Bärbel Bas, who was participating in the coalition committee for the first time as SPD leader, had already presented a corresponding draft. The pension protection level is to be stabilized at 48 percent by 2031. This should ensure that pensions do not fall behind wage developments in Germany. Bas expects the costs of the entire first pension package to rise to €11.2 billion by 2031.

The coalition partners also reaffirmed their further pension plans: "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."

On the topic of energy, the CDU/CSU and SPD all point to the cabinet's decisions from last week. The cabinet had initiated relief from network charges as of January 1st and the abolition of the gas storage surcharge for gas customers. The electricity tax reduction for industry, agriculture, and forestry is to be "permanent." It remained unclear until recently how a reduction in electricity tax for all businesses and consumers could be financed – according to the Finance Ministry, this would cost an additional €5.4 billion in 2026. Merz said in an interview before the meeting: "If we can do more for private households, then we will."

In their final report, the CDU/CSU and SPD calculate the relief the existing cabinet resolution will bring: They estimate a total annual relief of approximately €10 billion for consumers and businesses. All consumers would receive up to 3 cents per kWh. For a family of four, this would amount to up to €100 per year. According to the coalition agreement, the total would be five cents per kWh.

SoVD head Engelmeier said: "When Chancellor Merz says it's no longer possible because there's a lack of money, it's important to remember: climate-damaging subsidies such as diesel and company car privileges cost the state around €23.5 billion every year." She demanded: "This is where we could start, instead of once again letting low-income people down."