(Repeat from the previous evening)

BERLIN (dpa-AFX) - The leaders of the CDU/CSU and SPD have not yet reached an agreement on a further reduction in the electricity tax. According to a summary of the results of around five hours of consultations by the coalition committee, further relief measures – primarily for consumers and the economy as a whole – are to follow as soon as "the financial leeway for this exists." This means that the decision has been postponed indefinitely.

However, a decision was made on extending maternity benefits. This is to be implemented on January 1, 2027. If technical implementation is only possible at a later date, maternity benefits will be paid retroactively, according to the summary paper.

Energy

The coalition committee confirmed the cabinet's decisions from last week. The cabinet had initiated relief measures for grid fees as of January 1 and the abolition of the gas storage levy for gas customers. The reduction in the electricity tax for industry, agriculture, and forestry is to be "stabilized."

The fact that the electricity tax will not be reduced for everyone, contrary to the announcement in the coalition agreement, i.e., not for all businesses and not for private households, had triggered widespread criticism. Chancellor Friedrich Merz (CDU) and Federal Finance Minister Lars Klingbeil (SPD) justified the decision with budget constraints.

Billions in costs

The key question is how a reduction in electricity tax for all businesses and consumers can be financed – according to the Federal Ministry of Finance, this would cost an additional 5.4 billion euros next year. To achieve this, the coalition would have to make cuts in other areas.

Merz had promised a solution before the meeting. "If we can do more for private households, then we will do so," said the CDU leader on the ARD talk show "Maischberger." However, this will not happen for the time being.

Relief measures agreed

In their summary paper, the CDU/CSU and SPD calculate what relief the existing cabinet decision will bring. Network charges, which are part of the electricity price, are to be reduced and the gas storage levy for gas customers abolished. Together with the further reduction in electricity tax for manufacturing companies, this will result in annual relief of around 10 billion euros for consumers and the economy, according to the statement.

"These measures agreed by the coalition as a first step to reduce energy prices will already bring relief of up to 3 cents per kilowatt hour (kWh) for all consumers, private households, and families," the paper states. For a family of four, this means relief of up to 100 euros per year.

In the coalition agreement, the CDU/CSU and SPD announced: "We want to permanently reduce the burden on companies and consumers in Germany by at least five cents per kWh with a package of measures."

The government justified the decision on the electricity tax by saying that, in view of the weak growth, relief for industry was a priority in order to secure jobs.

Mothers' pension

The extended maternity pension is set to start on January 1, 2027—a year earlier than originally planned. "If technical implementation is only possible at a later date, the maternity pension will be paid retroactively," according to the paper issued by the CDU/CSU and SPD.

The pension insurance fund had recently informed the members of the committee in writing that implementation would not be possible until early 2028 due to extensive individual entitlement checks. This means that those affected should receive the money for 2027 retrospectively.

What is the extended maternity pension?

The extended maternity pension – a project demanded by the CSU – aims to extend the period of child-raising in the statutory pension insurance scheme for children born before 1992 by six months to three years. Back in June, it was said that the pension insurance system would need two years after the law was passed to implement the technical details. The coalition agreement does not specify a date for this "appreciation and recognition for all mothers." The measure is to be financed from tax revenues.

Pension package

"The components of extending the pension level cap and introducing a pension for mothers will be implemented as a first step with the current pension package in 2025," the coalition partners confirm. According to the draft, Federal Labor Minister and SPD leader Bärbel Bas estimates that her first pension law will initially require additional expenditure of 4.1 billion euros from 2029. In 2030, the costs are expected to rise to 9.4 billion euros, and in 2031 to 11.2 billion euros.

The extension of the stop line, which is particularly important to the SPD, is to be extended beyond the current year until 2031. Otherwise, pensions would fall in the foreseeable future as the baby boomers increasingly retire.

"The second part of the pension package, consisting of the active pension, early retirement pension, and the Company Pension Strengthening Act, will be decided by the cabinet in the fall and is to be implemented (with the exception of the early retirement pension) on January 1, 2026," the coalition continued.

Central committee

The coalition committee is considered the central planning body of the new government alliance and meets at least once a month. It deals with "matters of fundamental importance that must be coordinated between the coalition partners and, in cases of conflict, brings about consensus," as stated in the coalition agreement.

The committee consists of ten men and only one woman, which has attracted a lot of criticism. Saskia Esken was still present as SPD leader at the first meeting. This time, her successor Bas, who was elected party leader at the weekend, made her debut on the committee.

Frei at Sparkassen Forum instead of the Chancellery

Chancellery Chief Thorsten Frei (CDU), who prepared the coalition committee together with SPD State Secretary Bjorn Bohning, was not present this time. Frei instead attended the Sparkassen Forum in Donaueschingen in his constituency in the Black Forest. The event had been planned a year ago, long before the federal election, according to his entourage. Frei was represented by Michael Meister, Minister of State in the Chancellery for relations between the federal government and the states. /mfi/DP/stw