In the dispute over the 2027 federal budget CDU politician Mathias Middelberg said on 12 November 2026 that a cut in the electricity tax was more important than expanding the mothers’ pension. He did not rule out reallocating funds in favour of the electricity tax. The CSU rejected the proposal.
Middelberg told broadcasters RTL and ntv that a lower electricity tax would ease the burden on people facing high energy costs while also boosting purchasing power and the economy. He also said that offsetting fiscal drag in income tax was currently more important than introducing the expanded pension benefit. Fiscal drag can occur when wages rise but higher income tax rates consume part of the increase, even though purchasing power barely grows because prices have gone up.
The proposal raises an unresolved funding question. In their initial budget talks, the CDU/CSU and SPD did not agree on how an additional cut in electricity tax could be paid for. The tax for private households was therefore not to be reduced for the time being. Middelberg pointed to the coalition committee meeting the following week, where outstanding issues could be discussed again. His comments did not signal agreement on reallocating funds.
Bavarian social affairs minister Ulrike Scharf criticised the idea of setting the mothers’ pension against the electricity tax. The CSU politician pointed to the recognition of child-rearing contributions and called for the agreed expansion not to be called into question. The CSU had pushed for it during coalition negotiations. According to news agency dpa, the additional benefit is to be funded from tax revenue and is expected to cost around five billion euros a year from 2027.
The measure is part of the 2025 pension package. Until now, up to two and a half years of child-rearing credits could be recognised for children born before 1992; for children born later, the maximum was three years. The expansion is intended to remove this difference from 2027. It does not apply exclusively to mothers: fathers can also receive credits for eligible periods of child-rearing. Reversing or postponing the benefit that has already been agreed would therefore be a legal and political decision, not simply a change to a budget line.
The Budget Committee of the Bundestag began its final deliberations on the government’s draft on 12 November. It initially considered smaller individual budget plans, as the Bundestag announced. The committee can amend the draft; the federal budget is then decided by Parliament. The Bundestag’s final deliberations are scheduled for the sitting week of 23 to 27 November.
The dispute highlights differing priorities within the coalition: while Middelberg emphasises broad relief from energy costs, the CSU is defending an improvement for parents that has already been agreed. Following the comments on 12 November, it remained unclear whether, and how, both proposals would be funded.
Editor: Phillipe Schmidt-Araguin (Article created with AI assistance).