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Coalition Seals Tougher Welfare, Aktivrente and Road Funds, Leaves 2035 Engine Ban Open

Ministers plan swift legislation, with the 2035 combustion‑engine decision deferred to industry consultations.

Overview

  • Union and SPD will replace Bürgergeld with a stricter Grundsicherung and move immediately to draft the bill.
  • Missing a second job‑center appointment will trigger a 30% cut, a third no‑show can stop payments entirely with continued absence risking loss of housing support, with exemptions for serious health cases.
  • The Aktivrente is slated for cabinet approval next week to start on January 1, 2026, allowing retirees to earn up to €2,000 per month tax‑free without a progressionsvorbehalt.
  • An extra €3 billion for roads will be mobilized through SVIK reallocations for 2026–2029, and the coalition pledged that all build‑ready projects will proceed.
  • A targeted e‑car purchase program for low‑ and middle‑income households will be launched using EU Climate Social Fund money plus €3 billion from the KTF, while Germany’s stance on the EU’s 2035 engine ban remains undecided ahead of the auto summit.