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Union Pushes Coalition for Industrial Power Price and Gas Reserve Plan Ahead of Talks

Jens Spahn signals decisions at the coalition committee following a downgrade to next year’s growth.

Overview

  • Union leaders put energy costs at the center of tonight’s coalition meeting, with Jens Spahn saying he expects decisions on a subsidized electricity rate for industry and on new gas-fired capacity.
  • Coalition documents and participants indicate a plan to launch a three‑year industrial power price from January 1 for energy‑intensive sectors, with new gas plants designated as backup when renewables fall short.
  • Markus Söder urges that the planned gas plants be sited largely in Bavaria and Baden‑Württemberg, arguing the industrial south must be prioritized to protect jobs.
  • Söder presses the SPD to support scrapping the EU’s 2035 phaseout of new combustion‑engine cars, framing it as essential for Germany’s auto manufacturers.
  • Business tensions weigh on the talks, with 32 trade associations calling to stop the government’s pension package, and any concrete outcomes likely to be presented Friday.