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1h ago

Coalition Summit Targets Bürgergeld Replacement as 2035 Car Ban Split Persists

Leaders aim to wrap talks into decisions they can send to the cabinet by October 15 after weeks of haggling.

Das Kabinett trifft sich zur Klausur in der Villa Borsig, dem Gästehaus des Auswärtigen Amts am Tegeler See in Berlin.
Bas Klingbeil Merz
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Overview

  • Chancellor Friedrich Merz said the benefit will be recast under a new Grundsicherungsgesetz with roughly 10% savings targeted, and he expects agreement this week or next.
  • The overhaul under discussion includes tougher penalties for non-cooperation, with options up to full benefit cuts for those who refuse work entirely subject to constitutional limits and still-open design details.
  • CDU/CSU leaders want to undo or soften the EU’s 2035 combustion-engine phaseout, while the SPD insists the date stands, and negotiators are weighing flexibility measures ahead of an auto industry meeting on Thursday.
  • Transport funding is set for recalibration after Minister Patrick Schnieder’s €15 billion claim, as a review found fewer projects at risk and a smaller gap, with financing shifts from special funds under consideration and Schnieder absent from Berlin.
  • Health and long-term care financing decisions are being developed by an expert commission for spring 2026, and a modernization agenda envisions cutting bureaucracy costs by 25%—about €16 billion—and reducing federal staff by around 8%.