Berlin – The government consisting of the Union and the SPD was able to make all kinds of decisions in the last 24 hours.
Besides the issue of citizens’ money (for Ukrainians) and military conscription, the focus on Thursday was also on a comprehensive growth and energy package, aimed primarily at reducing pressure on industry and medium-sized businesses.
BILD summarizes what was decided in the last 24 hours:
energy
The centerpiece of the package proposed in the coalition committee is new industrial electricity prices: for 2026 to 2028, electricity costs for energy-intensive companies should be around five cents per kilowatt-hour. The coalition, among other things, wants long-term relief for companies in the steel, chemical and ceramic sectors.
They agree CDU/CSU And SPD also when building new gas-fired power plants. SPD emphasizes that the system should also work with climate-neutral hydrogen in the future.
Chancellor Friedrich Merz (lr, CDU), CSU chairman and Bavarian Regent Markus Söder and Finance Minister Lars Klingbeil (SPD) presented the results on the sidelines of the coalition committee
German Fund
A new German fund is also coming, intended to encourage investment in medium-sized businesses and startups capable of growth. The German fund is intended to mobilize private capital to promote future areas such as innovation, energy infrastructure and defense technology – a project close to Lars Klingbeil’s heart (47).
The SPD leader explained that the government was sending a signal with the resolution: “We see you, we see that jobs are threatened here.”
Fly
Germany as a flight location should also benefit: the government is again making flights cheaper.
The union wanted to reverse the aviation tax increase imposed by traffic lights – and the SPD agreed (Klingbeil, however, insisted that CDU Transport Minister Patrick Schnieder should offset the tax losses from his budget). Reductions will occur from July 2026 (around 350 million per year).
Background: Airlines have canceled connections in Germany due to high ticket prices.
Conscription
The debate about what’s new has been going on for months Military Service Act resolved – the Union and SPD factions were able to resolve their differences with Defense Minister Boris Pistorius.
Conclusion: In the future, all 18 year old men will have to go through collection! If there were not enough volunteers for military service among those deemed “fit for military service,” a draw would be held to see who would join the federal government!
Benefits of citizenship for Ukrainian citizens
The EU and SPD have also agreed to reforms promised in the coalition agreement: Ukrainian refugees will no longer be allowed in the future. Citizens’ money might get.
In particular, all Ukrainian citizens who come to Germany after April 1 2025 should be treated like asylum seekers in the future – and receive fewer benefits (“a change in the legal circle”). Interior Minister Alexander Dobrindt (55, CSU) and Social Affairs Minister Bärbel Bas (57, SPD) have agreed to this.
Illegal work
Fighting undeclared work: On Thursday, the Bundestag, with votes from the CDU/CSU and the SPD, passed a draft law from the Federal Ministry of Finance that would expand the authority of customs units for financial control of undeclared work (FKS), improve data analysis and simplify audits.
According to the draft law, barbershops, cosmetics studios and delivery services that carry goods for third parties would also be included in the catalog of sectors particularly affected by undeclared work.
Among others, the frigate “Hamburg” has departed on a mission as part of the EU mission “Med Irini”.
Bundeswehr
The Bundeswehr will continue to take part in two international missions in the Mediterranean. In the afternoon, the Bundestag expanded the mandate of the EU mission “Med Irini” off the coast of Libya.
Emergency services there are monitoring an arms embargo on Libya imposed by the UN. They should also take action against smugglers and human traffickers.
