Energy costs: For the time being, no reduction in electricity tax for everyone

For the time being, the tips from the Union and SPD have not reached an agreement on further reduction in electricity tax. As the coalition committee says in a result paper, further relief steps – especially for consumers and the entire economy – should follow as soon as “there are financial scope”. This means that this is postponed at an indefinite time.

On the other hand, there was a decision to expand the mother’s pension. This is to be implemented on January 1, 2027. If a technical implementation is only possible at a later point in time, the mother’s pension will be paid retrospectively, it says in the result paper.

The coalition committee confirmed the decisions of the cabinet last week. The cabinet had launched relief from January 1 with the network charges and the abolition of the gas storage levy for gas customers. With electricity tax, the reduction for industry, agriculture and forestry is to be “stabilized”.

The fact that electricity tax should not be reduced for everyone – contrary to the announcement in the coalition agreement, i.e. not for all companies and not for private households. Chancellor Friedrich Merz (CDU) and Federal Finance Minister Lars Klingbeil (SPD) had justified the decision with household constraints.

The key question is how a reduction in electricity tax can be financed for all companies and consumers – according to the Federal Ministry of Finance, this would cost around 5.4 billion euros in the coming year. To do this, the coalition would have to cut back on other projects.

Merz had promised a solution before the meeting. “If we can do more for private households, we will do that,” said the CDU leader in the ARD talk show “Maischberger”. This does not occur at first.

Relieved relief

In the result paper, the Union and SPD calculate what the existing cabinet decision brings to relief. The network charges, part of the electricity price, are to be reduced and the gas storage levy for gas customers is to be abolished. Together with the further reduction of electricity tax for manufacturing companies, this is a relief of around 10 billion euros for consumers and the economy, it is said.

“With these coalition measures to reduce energy prices as the first step, all consumers, private households and families are already relieved of up to 3 cents per kilowatt hour (kWh),” says paper. For a family of four, this means a relief of up to 100 euros per year.

In the coalition agreement, the Union and the SPD have announced: “We want to relieve companies and consumers in Germany by at least five cents per kWh with a package of measures.”

The government had justified the decision on electricity tax by the fact that in view of the weakness weakness, relief for industry had priority to secure jobs.

The extended mother’s pension should start on January 1, 2027 – and thus a year earlier than initially assumed. “If a technical implementation is only possible at a later date, the mother’s pension will be paid retrospectively,” says the paper from Union and SPD.

The pension insurance had recently informed the members of the committee in writing that implementation due to extensive individual claims tests was only possible in early 2028. So the money for those affected should flow after 2027.

What is the extended mother’s pension?

In the case of the extended mother’s pension – a project required by the CSU – the child -rearing period in the statutory pension insurance will in future be extended for children born before 1992, by six months to three years. Already in June it was said that the pension insurance needed for the technical implementation two years after the law was announced. The coalition agreement does not provide a date for this guarantee of “appreciation and recognition for all mothers”. Financing should be from tax funds.

“The components extension of the stop line for the pension level and mother’s pension are implemented as a first step with the present pension package 2025,” reaffirm the coalitioners. Overall, Federal Minister of Labor and SPD Bärbel BAS estimates for her first pension law, according to his draft, additional expenditure of initially 4.1 billion euros from 2029. In 2030, the costs are expected to increase to EUR 9.4 billion, 2031 to EUR 11.2 billion.

The – particularly important – extension of the stop line to the SPD is to be extended over the current year until 2031. Otherwise, the pensions would fall for the foreseeable future when the baby boomers are increased.

“The second part of the pension package consisting of an active pension, early start pension and the company pension strengthening law will be decided in the cabinet in autumn and (with the exception of the early start pension) on January 01, 2026, the coalition continued.

The coalition committee is considered the central planning committee of the new government alliance and meets at least once a month. He deals with “matters of fundamental importance that must be coordinated between the coalition partners and leads to consensus in the event of conflict”, as the coalition agreement states.

The committee belong to ten men and only one woman, which has caused a lot of criticism. In the first session, Saskia Esken was still there as a SPD leader. This time her successor BAS had her premiere in the committee, which was elected to the party leadership at the weekend.

Free at Sparkassen-Forum instead of in the Chancellery

This time Chancellor’s head Thorsten Frei (CDU), who prepared the coalition committee together with SPD state secretary Björn Böhning, was not there this time. Instead, freely took part in the Sparkassen-Forum in Donaueschingen in his constituency in the Black Forest. The event was planned a year ago – long before the Bundestag election, it said in its environment. Frei was represented by Michael Meister, Minister of State in the Chancellery for the Relations between the federal and state governments.