Cabinet approves new building modernization law

The federal cabinet has approved the draft of the building modernization law. The new legislation replaces the controversial heating law of the previous traffic-light coalition and aims to offer more flexibility in heating choices.

The cabinet passed the draft law on May 13 in Berlin. Federal Economy Minister Katherina Reiche said the forced heating replacement no longer applies. Gas heaters can still be installed if an increasing share of CO2-neutral fuels is used from 2029 onward.

Building Minister Verena Hubertz stressed that the chapter of the old law is now closed. Tenants and owners gain more decision freedom, the draft states.

The National Normenkontrollrat sharply criticized the text. Chairman Lutz Goebel called it one of the most poorly crafted and impractical projects in recent years. The council urged the Bundestag to revise the draft in the parliamentary process.

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German politicians finalizing heating law reform, symbolizing 50/50 landlord-tenant cost sharing for green fuels from 2029.
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Coalition finalizes heating law reform with cost-sharing and quotas

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Germany's black-red coalition has finalized its heating law reform, building on February's agreement. Key addition: landlords and tenants will split costs 50/50 for green fuels in new systems, mandatory from 2029 with rising biogenic quotas.

The federal cabinet approved the power plant law in mid-May. Two recent studies however point to problems with using gas power plants as backup.

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Chancellor Friedrich Merz stated that the draft health reform bill is »practisch fertig« and will be voted on in the cabinet on Wednesday. Health Minister Nina Warken's (CDU) savings package aims to cut around 19.6 billion euros next year. The proposal faces criticism from associations, health insurers, and parts of the coalition.

The EU Commission has approved Germany's introduction of an industrial electricity price. Federal Economics Minister Katherina Reiche announced this on Thursday in Berlin, calling it a great success. Finance Minister Lars Klingbeil described the measure as good news for industry.

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Chancellor Friedrich Merz has called on coalition partner SPD to lift blockades on reform projects. At an event of the German Banks Association in Berlin, he announced serious talks for the evening. Energy policy, pension reform, and statutory health insurance are in focus.

Following coalition negotiations and a December 2025 mediation effort on her stalled savings law, Federal Health Minister Nina Warken (CDU) received a major boost on Monday as a government-appointed commission of ten scientists presented a 480-page report with 66 reform measures for statutory health insurers in Berlin. The proposals aim to close a projected 15.3 billion euro deficit next year and generate over 40 billion euros in short- to medium-term savings, preventing contribution increases.

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Federal Building Minister Verena Hubertz announced cuts that will affect all recipients. One third of households could lose eligibility.

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