This measure, effective for two months, is expected to save around 1.6 billion euros. Chancellor Merz anticipates that oil companies will pass on these savings to drivers, particularly benefiting those with high fuel consumption. Additionally, employers may provide tax-free bonuses of up to 1,000 euros to employees, offset by an earlier increase in tobacco taxes. Future reforms include a planned income tax overhaul by January 2027 and potential adjustments to EU regulations on combustion engine vehicles. The coalition’s proposals have met with skepticism from various stakeholders regarding their effectiveness.