The Union and SPD factions met on Thursday evening for faction meetings to discuss the status of the budget negotiations. A postponement of the planned sugar tax until 2028 has apparently been agreed upon so far. The increase of the sparkling wine tax by 20 percent and the new plastic tax will not be implemented. Several cuts in the social sector are being withdrawn. The immediate supplement for around 3 million poor children amounting to 25 euros per month is set to remain. Housing benefit will not be reduced. The basic security will not be increased until June 30, 2028. The planned income tax reform also has not been agreed upon. The electricity tax reduction promised in the election campaign and agreed upon in the coalition contract will also not be implemented in 2027. The measure was intended not only to relieve citizens and companies but also to accelerate electrification to use energy more efficiently and emit less CO2.

Mixed
Budget talks drag on Union/SPD agree to postpone Sugar tax to 2028 Social benefits saved but key income tax reform delayed
- November 11, 2026
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