A plan to add eight gigawatts of gas-fired capacity next year as reserve power, with potential hydrogen use and a target of decarbonization by 2045, alongside broader renewable expansion.

Economists and policymakers warned the package risks raising energy costs for many firms and relies on lobbying, with Green politicians calling for bolder climate-aligned action.

Germany’s ruling coalition is unveiling a package to bolster the economy, including an industrial electricity price and a cut to the aviation ticket tax, a move critics say could undermine climate protection.

The plan aims to lift an ailing economy with tax relief for air travel and a new industrial electricity price, drawing mixed reactions from industry, environmentalists, and economists.

A moderator challenged climate framing during the discussion, highlighting tensions over whether measures are genuinely climate-friendly.

Greens argued the measures are insufficient and criticized the government as timid, while industry welcomed steps as addressing competitiveness and affordability.

The full discussion and reporting on the package are available on ZDF, produced in cooperation with teleschau.

There was no immediate agreement on phasing out new combustion engines after 2035 within the EU, though Chancellor Merz signaled possible progress later, with pension reform also on the agenda.

Finance Minister Lars Klingbeil estimated three to five billion euros in costs funded by the Climate and Transformation Fund, a financing approach Green critics say lacks climate relevance.

Industry groups like VCI and BDI welcomed the measure as helping energy-intensive sectors, but stressed it is not a complete solution and should be complemented by further relief.

Lufthansa and other industry voices urged recognition of the sector’s seriousness, while signaling that more measures will be needed in coming years.

The Deutschlandfonds will connect various funding tools to mobilize private investment in energy, resilience, and security-startups, aiming to address Germany’s lag in financing innovative companies.