Overview
- - Coalition leaders, who presented the deal Monday morning at the Chancellery after a weekend retreat, approved a roughly €0.17‑per‑liter cut to the fuel tax on petrol and diesel for two months worth about €1.6 billion in relief.
- - The package adds a tax‑free employer “relief bonus” of up to €1,000 for 2026, though payouts depend on companies choosing to grant it.
- - Part of the funding is slated to come from measures targeting oil‑sector extra profits now under EU examination, with higher tobacco taxes planned to offset lost revenue from the bonus.
- - A draft health‑insurance reform built on a 66‑point commission report is due in cabinet by late April, with options under discussion to curb sick‑leave costs, including limits on continued pay and debate over a one‑day waiting period known as a Karenztag.
- - The fuel step responds to price pressure that intensified after the U.S. announced a Strait of Hormuz blockade, while economists and unions criticize the relief as broad and uneven, and an open rift around Economics Minister Katherina Reiche underscores ongoing internal strain.