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3h ago

CDU/CSU–SPD Coalition Seals Social, Pension and Transport Deals as EU Car-Ban Stance Is Deferred

The government set out a legislative push after overnight talks, with its position on the 2035 combustion‑engine ban still pending.

Nach dem Koalitionsausschuss geben Markus Söder (l-r), Ministerpräsident von Bayern und Vorsitzender der CSU, Friedrich Merz, Bundeskanzler und Bundesvorsitzender der CDU, Bärbel Bas, Bundesministerin für Arbeit und Soziales und Bundesvorsitzende der SPD, und Lars Klingbeil, Bundesminister der Finanzen und Bundesvorsitzender der SPD zur Bekanntgabe von Ergebnissen im Bundeskanzleramt eine Pressekonferenz.
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Jan Böhmermann im Gespräch mit Kulturstaatsminister Wolfram Weimer im Haus der Kulturen der Welt
Koalitionsausschuß: Kanzler Friedrich Merz fährt ab.

Overview

  • Bürgergeld will be replaced by a new Grundsicherung with tougher enforcement: missed Jobcenter appointments trigger a 30% cut at the second no‑show and full benefit suspension at the third, with exemptions for serious health or psychological impairments.
  • The Aktivrente is slated to start on 1 January 2026, allowing pensioners in social‑security employment to earn up to €2,000 per month tax‑free, with cabinet action planned next week and no progressionsvorbehalt.
  • Targeted incentives for electric cars will return, focusing on low‑ and middle‑income households, funded via the EU Climate Social Fund plus €3 billion from Germany’s Climate and Transformation Fund through 2029.
  • An additional €3 billion will be reallocated within the infrastructure special fund to build new roads in 2026–2029, with leaders stating that all shovel‑ready projects should proceed.
  • After roughly eight hours of coalition talks, leaders said a decision on the EU’s 2035 combustion‑engine phaseout remains open and will be discussed further around the auto industry dialogue.