Former Economics Minister Peter Altmaier (CDU) recently advocated for the extension of the fuel subsidy following the failure of the 1,000 Euro relief premium during the Bundesrat session. Speaking to “Welt” TV on Tuesday, Altmaier argued that the sharp decline in fuel prices, which he credits to the subsidy and low oil market prices, strengthens his belief that the subsidy should be maintained indefinitely if no superior alternative is found, until crude oil markets return to a stable and reasonable level.
While acknowledging the need for support for those who require cars for work, Altmaier suggested alternative tax solutions, such as increasing the lump-sum allowance for employees or identifying other tax provisions to offer relief. He stressed that the ruling coalition must dedicate significant attention to this issue, as the public had been promised a form of economic relief.
However, he emphasized that the core focus must be on a comprehensive tax reform. According to Altmaier, the objective of this reform is clear: to ensure that “if you work more, you will have more money in your wallet than before” by relieving the middle class, key earners, employees, and families.
Although he does not anticipate achieving a major tax reform agreement that evening due to deep structural disagreements, he expressed hope for a “positive message” from the upcoming summit. He mentioned that the CDU/CSU and the SPD could potentially agree to provide a 5 to 10 percent tax relief for skilled trades workers and related employees, effective January 1, 2027.
In an advisory warning, the former minister cautioned against any results emerging from the coalition committee that merely project a sense of helplessness. He argued that German companies urgently require long-term clarity regarding tax policy, bureaucratic reform, and social policy over the next three years. Despite the current difficulties, Altmaier concluded on an optimistic yet sober note, stating, “I am convinced we can still succeed, but we must finally draw the consequences from the mistakes made over the past days and weeks”.