Government has reached consensus on a substantial plan involving energy costs, retirement benefits, and asylum matters
In a significant move, the German government, comprising of CDU/CSU and SPD, has unveiled a comprehensive package of reforms spanning various sectors. The cabinet meeting on September 10, 2025, saw the introduction of around two dozen bills, marking a "massive package" and a "range of topics that rarely comes up in cabinet."
One of the key areas of focus is the energy sector, where consumers and businesses are set to benefit from a state subsidy of 6.5 billion euros. This relief is aimed at reducing electricity prices, particularly for companies in the manufacturing sector, agriculture, and forestry. However, the electricity tax will not be reduced uniformly but will remain lowered only for the specified industries.
The government is also taking steps to promote company pensions. The tax promotion of company pensions is to be increased, with the state financing it annually with around 155 million euros. To make it easier for small companies to offer old-age provision, so-called opting-out systems are to be facilitated.
In a move to simplify online purchasing, the cancellation of purchases is to be significantly simplified. Providers must install an easily findable cancellation button on their websites, providing customers with more flexibility and control over their purchases.
Environmental concerns are not being overlooked. Germany is setting the course for the planned reform of the Common European Asylum System (GEAS). As part of this, oil and gas extraction is to be banned in six marine protected areas in the North and Baltic Seas. However, the controversial planned gas drilling north-west of Borkum will not be affected by this restriction. Extraction of raw materials will be fundamentally limited to sand and gravel extraction in these areas.
In a bid to ensure the sustainability of products, if items are advertised as "sustainable" or "environmentally friendly", this must now be verifiable. Clear residence and registration requirements for asylum seekers are also planned, aiming to facilitate deportations and transfers to other European states.
The government has also announced plans to strengthen critical infrastructure resilience, with the 2025 Tax Amendment Act and laws strengthening critical infrastructure resilience being among the drafts decided upon. Reporting obligations under the German Supply Chain Act are to be abolished for companies, while only serious violations of the Act will be punished.
Lastly, stricter rules are planned for advertising, although the specifics of these rules have not been detailed. Asylum seekers with a protection quota of less than 20 percent will go through their procedure at the EU external border and may be directly deported from there.
The Bundestag will decide on the plans of the government, with these reforms set to shape the future of various sectors in Germany.
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