Overview
- Energy‑intensive firms are to get a subsidised power price targeted at €0.05/kWh for 2026–2028, with Finance Minister Lars Klingbeil estimating federal costs at €3–5 billion and saying EU state‑aid talks are largely concluded.
- The government will roll back the air travel tax to pre‑May 2024 levels from 1 July 2026, a move Chancellor Friedrich Merz said equates to roughly €350 million a year for the sector.
- A power‑plant strategy will tender about 10 GW of new capacity, including 8 GW of gas plants and 2 GW designed so storage can compete, with tenders starting in 2026 and commissioning aimed by 2031 pending EU clearance.
- A planned Deutschlandfonds will seek to mobilise private capital for infrastructure, startups and strategic industries, with implementation expected through KfW‑run instruments and no funding volume yet specified.
- Contentious issues remain unresolved, including the rentenreform and combustion‑engine rules, as critics warn the package is temporary and lobby‑driven and note a confusing late‑night signal from Merz about quick deals that did not materialise.