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, reaffirmed from last week’s cabinet decisions, will limit electricity tax reductions to the manufacturing sector and agriculture, falling short of the broader relief outlined in the coalition agreement. While further measures to alleviate the burden on private consumers and the wider economy are anticipated, the coalition has stated these will only be implemented “when financial resources allow.
However, agreement was reached during the approximately six-hour deliberations concerning the expansion of the “Mütterrente” (Mothers’ Pension). The expanded benefit is slated for implementation on January 1, 2027, with potential retroactive application if technical delays arise.
The expanded “Mütterrente” will extend the recognized period of childcare for statutory pension insurance to children born before 1992, increasing the qualifying period by six months to a total of three years. Funding for this expansion will be sourced from tax revenues.
