Energy costs: no further electricity tax reduction – “fatal”

For the time being, the electricity tax should not be reduced as much as promised for consumers as originally promised. The leaders from Union and SPD did not achieve a corresponding agreement at their second meeting in the coalition committee.

In the coalition agreement, Schwarz-Rot had promised: “For quick relief by at least five cents per kWh (kilowatt hour), we will reduce electricity tax for everyone as quickly as possible and reduce the transfer network charges for everyone.” The chairwoman of the Social Association of Germany (SOVD), Michaela Engelmeier, spoke of a “fatal signal” after the top meeting in the Chancellery.

In contrast, the extended mother’s pension should come earlier than initially – and will be paid retrospectively in the event of technical delays. This timetable is new.

Criticism about high living costs

Engelmeier criticized that the coalition initially only wants to reduce electricity tax for industry, but not also for consumers. “You need noticeable relief, especially in times of high living costs,” said Engelmeier to the German Press Agency.

As stated in a result paper after around five -hour consultations with Chancellor Friedrich Merz (CDU), further relief steps should follow – especially for consumers and the entire economy. But the coalitioners give a decisive restriction: financial scope should exist.

Mothers’ pension as early as 2027

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 is paid retrospectively,” says the Union and SPD earnings paper.

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. In the case of the extended mother’s pension – a project required by the CSU – the recognized child -rearing period in the statutory pension insurance will also be extended for children born before 1992.

“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. Federal Social Minister Bärbel Bas, who was the SPD leader for the first time at the coalition committee, had already submitted a corresponding draft. The security level of the pension is to be stabilized by 48 percent by 2031. As a result, the pensions should not fall behind the wage development in Germany. BAS expects to 11.2 billion euros by 2031 with increasing costs for the entire first pension package.

In addition, the coalitioners confirm their further pension plans: “The second part of the pension package consisting of 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) is to be implemented on January 01, 2026.”

Energy resolutions affirmed

When it comes to energy, the Union and SPD refer to 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”. It remained open until the end how a reduction in electricity tax can be financed for all companies and consumers – according to Finance Ministry, this would cost around 5.4 billion euros in 2026. Before the meeting, Merz said in an interview: “If we can do more for private households, we will do that.”

Relieved relief

In the result paper, the Union and SPD calculate what the existing cabinet resolution brings relief: In the annual impact, they have a relief of around 10 billion euros for consumers and the economy. All consumers would be relieved of up to 3 cents per kWh. For a family of four, this is up to 100 euros per year. According to the coalition agreement, it should be five cents per kWh.

Association reminds Merz of subsidies

SOVD boss Engelmeier said: “If Chancellor Merz says that the money is no longer possible because the money is missing, it should be remembered: climate-damaging subsidies such as diesel and company car privileges cost the state around 23.5 billion euros every year.” She demanded: “You could start here instead of letting people down again with small incomes.”