Overview
- Finance Minister Lars Klingbeil warned the package could be dropped if Länder refuse to share the multi‑billion‑euro costs.
- The proposal would lower VAT on restaurant meals from 19% to 7% starting in January 2026, but it remains unapproved.
- States are cited as projecting more than €11 billion in costs through 2030 and are pressing the federal government to cover the shortfall.
- Hospitality leaders from DEHOGA caution that failure would force price increases and could trigger closures, with Rheinland‑Pfalz’s chief estimating roughly 500 shutdowns this year.
- Industry representatives decry a political blame game eroding confidence as the dispute unfolds around the Ministerpräsidentenkonferenz in Mainz, which also touches commuter and volunteer tax measures.