Overview
- After weekend talks at Villa Borsig, the government moved a bill this week to cut fuel duty by up to 17 cents per liter from May 1 and to let employers pay a tax‑free €1,000 bonus.
- Reports said the crisis negotiations nearly collapsed, with Union negotiators even floating scrapping the May 1 public holiday, which angered SPD figures.
- Lawmakers warned oil firms may keep the tax cut as extra margin, and the Bundestag is weighing ways to ensure the full reduction reaches motorists.
- The coalition also backed more domestic gas extraction, including contested drilling near Borkum, but required Bundestag and Bundesrat approvals remain uncertain given opposition from Greens, Die Linke, and environmental groups.
- Health Minister Nina Warken unveiled a roughly €20 billion savings plan for statutory insurance that would curb free spousal co‑insurance and raise drug co‑pays, and she now must secure support within the coalition and parliament.