BERLIN, April 13 (Reuters) – Germany’s coalition government on Monday announced a package of measures nL6N40W0EC to cut fuel costs, allow a tax-free worker bonus, set a timeline for overhauling the statutory health insurance system and push changes to EU car emissions rules.

The following are key points from the coalition paper:

FUEL PRICE RELIEF

– Cut Germany’s energy tax on diesel and petrol by about 0.17 euros per litre for two months,  relief worth around 1.6 billion euros ($1.87 billion). Cost to be offset by competition- or tax-based measures targeting oil companies.

– Tougher antitrust: expand powers of Germany’s federal Bundeskartellamt competition watchdog to collect data across the motor-fuel supply chain and pursue remedies, including clawing back excess profits after sector probes, to ensure wholesale price drops are passed on to consumers.

– Longer term: expand domestic energy supply, including by tapping selected German gas fields, accelerating renewables and strengthening cross-border power grid links.

WORKER RELIEF

– 2026: Employers may pay a one-off, tax- and social-contribution-free bonus of 1,000 euros. Lost tax revenue to be offset by a tobacco tax hike this year.

– 2027: Major overhaul of income tax to permanently reduce the burden on lower- and middle-income households.    

STATUTORY HEALTH INSURANCE (GKV)

Germany’s statutory health insurance system, covering most residents and backed by payroll contributions from employers and employees, faces a funding gap https://www.reuters.com/business/healthcare-pharmaceuticals/german-special-commission-health-insurance-proposes-measures-cap-costs-2026-03-30/ that could reach 40 billion euros in 2030.  

– Goal: curb spending growth, align outlay with revenue and stabilise contribution rates, with all stakeholders required to contribute.

– Cabinet to approve a draft law on April 29, with passage targeted before the summer parliamentary recess.

AUTO INDUSTRY – EU RULES AND GERMAN POSITION

The European Commission https://www.reuters.com/sustainability/climate-energy/factbox-whats-european-commissions-proposals-reverse-2035-combustion-engine-ban-2025-12-16/ has opened a new lawmaking process. Germany is responding to the Commission’s draft:

– Germany supports a “technology-neutral” approach, which would still allow new combustion-engine cars to be registered after 2035 if they meet EU rules.

– Germany will seek to pause the tougher 2027 formula for plug-in hybrids (“Utility Factor”). It will push for vehicles that run exclusively on renewable fuels, including advanced biofuels, to be credited as zero-emission without delay.

– Germany rejects the Commission’s proposed bonus compliance credits for small https://www.reuters.com/sustainability/climate-energy/factbox-whats-european-commissions-proposals-reverse-2035-combustion-engine-ban-2025-12-16/ electric vehicles and any size-based preferential treatment.

– “Banking and borrowing”: Germany backs letting carmakers carry over excess CO2 reductions or bring some forward in the 2025-2029 and 2030-2034 periods, with three-year compliance periods for the 2030 and 2035 targets to allow flexible compliance and avoid penalties.

($1 = 0.8550 euros)

(Reporting by Kirsti Knolle, Marianda Murray, Maria Martinez and Andreas Rinke; Editing by Kirsten Donovan)