Overview

• The coalition’s first major policy showdown unfolded as CDU/CSU and SPD leaders met in the Koalitionsausschuss to align their electricity tax-cut pledge with tight fiscal rules.
• A cabinet decision so far applies the reduced rate only to industry and agriculture, postponing relief for private households.
• The Federal Finance Ministry estimates that a full extension of the tax cut to households would add roughly €5.4 billion in annual expenditure.
• Union figures Markus Söder and Jens Spahn have called for Bürgergeld savings to bankroll broader relief, drawing criticism from SPD leader Bärbel Bas.
• SPD budget spokesman Thorsten Rudolph urged redirecting funds from measures like the Mütterrente, agrardiesel and gastronomy tax cuts to cover the energy relief.