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  • German Coalition Agrees on Infrastructure Acceleration, Pension, and Heating Law Reforms

    Daily Pulse December 11, 2025

    German Coalition Agrees on Infrastructure Acceleration, Pension, and Heating Law Reforms

    Germany’s governing coalition, comprising the Union and SPD, has reached agreements on several key policy areas following a committee meeting. A central outcome is the decision to accelerate significant infrastructure projects, including major railway lines, highways, waterways, and bridges. This acceleration will involve streamlining procedures, such as environmental impact assessments and association lawsuits, and utilizing a special investment program to address construction bottlenecks.

    While progress was made, differences remain regarding the ‘heating law’ (Gebäudeenergiegesetz), with a revised, more flexible ‘Building Modernization Law’ expected by late February. Additionally, a pension commission is set to be formed next week to reform the old-age security system, aiming for stability and intergenerational equity. Discussions also covered the ‘Bürgergeld’ reform, likely proceeding to cabinet despite some ministerial reservations, with a focus on protecting vulnerable individuals. The coalition further plans to enhance private old-age provision for young people through increased state subsidies and new child-related contributions.

    Source: https://www.deutschlandfunk.de/koalitionsausschuss-verstaendigt-sich-auf-beschleunigung-von-infrastruktur-projekten-auch-beschluess-100.html