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1h ago

German Coalition Strikes Deal on Tougher Welfare, Aktivrente and Transport Funding as 2035 Engine Stance Waits

The agreement sets swift lawmaking in motion for welfare and retirement changes, leaving the 2035 engine ban undecided.

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.
Jan Böhmermann im Gespräch mit Kulturstaatsminister Wolfram Weimer im Haus der Kulturen der Welt
Koalitionsausschuß: Kanzler Friedrich Merz fährt ab.
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Overview

  • ‘Bürgergeld’ will be recast as a stricter Grundsicherung with stepped sanctions for missed Jobcenter appointments—30% cuts after the first and second no‑shows and full benefit suspension after a third—plus tighter asset rules and no grace periods, with exemptions for serious health or psychological impairments.
  • The coalition backed an Aktivrente starting January 1, 2026 that allows retirees in socially insured jobs to earn up to €2,000 per month tax‑free, with cabinet consideration slated for next week.
  • Roughly €3 billion will be redirected for targeted e‑mobility incentives focused on low‑ and middle‑income households, and another €3 billion for road construction, using reallocations from the Climate and Transformation Fund and unused budgeted funds.
  • Leaders deferred a unified national position on the EU’s 2035 phaseout of new combustion‑engine cars, pointing to industry talks at the chancellery today and the European Commission’s pending review.
  • Separately, lawmakers took up a Bundestag vote to repeal the little‑used 2024 ‘turbo naturalization’ provision offering citizenship after three years, as reported by multiple outlets.