Overview

• The four-page Sofortprogramm includes improved depreciation rules for 2025–27 investments, reduced electricity taxes and network fees, elimination of the gas storage levy, lowered restaurant VAT and a higher commuter subsidy.
• The coalition approved tighter migration rules by halting family reunification for subsidiary protection refugees, reinstating a five-year naturalization period and strengthening border controls.
• Negotiations in Saxony remain deadlocked after the CDU opposed new borrowing, raising the prospect of cuts to cultural, youth and social welfare programs if no deal is struck by end-June.
• Bavaria’s cabinet meets at Tegernsee to reassess energy policy, hospital funding, social housing and daycare expansion after forecasts of reduced tax revenues.
• Legislation is being drafted to expedite projects funded by the €100 billion special infrastructure fund, extend rent-price brakes and enforce labor standards on public contracts.