Energy prices
Politicians call for tax reform after Bundesrat rejects relief premium
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After the Bundesrat blocked the planned tax-free relief premium of up to 1,000 euros, leading politicians are urging a comprehensive income tax reform instead. Manuela Schwesig (SPD) and Markus Söder (CSU) described the premium as failed.
Top representatives of Germany's black-red coalition from CDU, CSU and SPD concluded their two-day talks on energy prices and social-tax reforms late Sunday night at Villa Borsig near Berlin. No results were disclosed immediately. It remains unclear if announcements will follow on Monday.
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Due to the Iran war's impact on energy prices, the EU Commission has urged member states to lower gas storage filling targets from 90 to 80 percent. EU Commissioner Dan Jørgensen wrote in a letter that this could reduce gas demand and ease price pressures. The EU is better prepared for crises than in 2022.