Governing coalition agrees on rapid aid for consumers and the economy

In view of the high energy prices, the governing coalition of the CDU, the CSU and the SPD has agreed on tangible relief measures for citizens and companies. A key element is the reduction in fuel tax, which is to be reduced by around 17 cents per litre for two months. Federal Chancellor Friedrich Merz emphasised that this step would "very quickly improve the situation for car drivers and businesses in the country, and especially for those who travel a lot by car, particularly for professional reasons".

Relief measures and structural reforms at a glance:

• Immediate energy programme: The reduction in fuel tax by around 17 cents per litre for petrol and diesel for two months will save citizens and companies around 1.6 billion euros at the pump. The tax shortfalls are to be offset by legally enforceable measures aimed at companies in the oil industry. The coalition also wants to further tighten competition law.
• Relief measure for employees: Employers will be able to pay a tax-free and duty-free relief bonus of 1,000 euros in 2026. In this case, the tax losses are to be offset by an increase in tobacco tax which is due to come into force in 2026. The governing coalition is also planning to reform income tax on 1 January 2027 in order to permanently ease the burden on low- and middle-income households.
• Reform of statutory health insurance: The Federal Government wants to pass a reform of statutory health insurance at the end of April. This is based on the proposals of the Healthcare Finance Commission (Finanzkommission Gesundheit). The aim is to stabilise contributions and limit expenditure. Ultimately, the Federal Chancellor emphasised, this is "one of the biggest welfare state reforms in our country", to which all service areas must make a contribution.
• Strengthening of the automotive industry: The coalition rejects the tightening of CO₂ (carbon dioxide) values for hybrid vehicles planned for 2027. Merz said that it was now "entering into further discussions in Brussels with complete technological openness".

With these measures, the governing coalition aims to provide short-term relief for citizens and the economy while simultaneously introducing structural reforms. Chancellor Merz emphasised that the coalition was on the right track here, while also making it clear that there is still a lot to do. "This is just the beginning", said Merz.

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