Discussions regarding a broad-based reduction in electricity taxes have stalled between the Union and SPD coalition partners. A consensus was not reached during Wednesday evening’s meeting of the coalition committee.
The current plan, stemming from last week’s cabinet decisions, will limit electricity tax reductions to the manufacturing sector and agriculture, deviating from the agreement outlined in the coalition contract. While further relief measures for private consumers and the wider economy are still planned, the coalition agreement states these will only be implemented “when financial resources allow.
However, the coalition partners did reach an agreement during approximately six hours of deliberation on expanding the “Mütterrente” or mothers’ pension. The expansion is slated to take effect on January 1, 2027, with potential retroactive application if technical delays arise.
The expanded “Mütterrente” will extend the recognized period of child-rearing for statutory pension insurance to children born before 1992, increasing it by six months to a total of three years. The financing for this expansion will be covered by tax revenues.