Finances: Coalition finds compromises for budget – electricity tax unresolved
The coalition partners CDU/CSU and SPD are struggling to finalize the 2027 federal budget. Will there be additional tax relief at the last minute?
The German coalition government has resolved several disputes over the 2027 federal budget, but a proposed reduction in electricity tax for all remains unresolved. The coalition factions met in special sessions to assess progress, with the CDU/CSU and SPD agreeing on compromises on new taxes, including a delayed introduction of a sugar tax on heavily sweetened beverages until January 1, 2028, and the abandonment of a plastic packaging tax.
The parties also agreed to drop plans for a sparkling wine tax increase and cuts to social benefits for families. However, they still need to find a solution to mitigate the impact of high energy prices, with the CDU/CSU prioritizing a reduction in electricity tax and the SPD focusing on a fuel price cap.
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
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