Friday's top story: Chancellor’s office halts sugar tax plan in coalition showdown
Germany’s proposed sugar tax has been put on hold after the Chancellor’s Office blocked plans put forward by Finance Minister Lars Klingbeil, exposing growing tensions within the ruling CDU-SPD coalition.
The measure, originally recommended by a government-appointed expert panel, is intended to encourage manufacturers to reduce the sugar content of soft drinks and improve public health.
Klingbeil’s proposal would have introduced a levy on sugary beverages from July 2027, with rates varying according to sugar content and expected to raise around €1 billion annually.
But Chancellor Friedrich Merz’s office has suspended the legislation, arguing that the finance ministry’s draft departs from the recommendations agreed by the coalition. Officials contend that the proposed tax rates are higher than those suggested by experts and would struggle to secure sufficient support within the government.
READ ALSO: Which drinks will Germany's coming 'sugar tax' really apply to?
The setback highlights strong political resistance to the plan, particularly within CDU and CSU ranks. Agricultural groups and the food industry have lobbied heavily against the proposal.
Beyond the debate over sugary drinks, the dispute is widely seen as evidence of increasingly strained relations within the coalition as disagreements over welfare, pensions and spending reforms continue to intensify.
Klopp oversees first Germany victory after rejecting racist criticism
Jürgen Klopp secured his first win as Germany manager as his side defeated Serbia 2-0 in Munich, but pre-match comments condemning racist criticism of the national team dominated the build-up.
Ahead of the Nations League fixture, Klopp strongly dismissed social media claims that Germany’s squad was “not white enough” or “not German enough”, describing the debate as “complete nonsense” and saying he had little time for “idiocy”.
The former Liverpool manager praised the unity within his squad and argued that sport demonstrated the value of mutual respect and inclusion.
READ ALSO: 'New one' Klopp promises fresh approach as Germany reign begins
Against Serbia, Germany delivered a more convincing performance than in Klopp’s opening two matches, which had produced a draw against the Netherlands and a defeat to Greece. Tom Bischof gave the hosts the lead shortly before half-time, before Florian Wirtz sealed victory with a second goal after the break.
Energy bills set to climb as experts warn of 20 percent price surge
German households are facing the prospect of significantly higher energy costs this winter, with comparison website Verivox warning that electricity and gas prices could rise by as much as 20 percent as the conflict in Iran continues to disrupt global energy markets.
Verivox chief executive Daniel Puschmann said electricity prices for new customers have already increased sharply. Average tariffs now stand at just under 31 cents per kilowatt-hour, around 20 percent higher than at the beginning of March.
Gas prices are also expected to rise substantially, driven by high wholesale purchasing costs and unusually low storage levels. While only a limited number of suppliers have announced increases so far, Verivox expects wider price rises to take effect by the turn of the year.
According to the company, a typical family living in a detached house could see annual gas costs reach around €2,400, roughly €400 more than before the outbreak of the Iran conflict. Electricity bills are also expected to remain under pressure.
READ ALSO: IN NUMBERS - How much will Germany's fuel tax cut save drivers?Berlin rents to rise for 90,000 tenants in state-owned housing
Around 90,000 households in Berlin will face rent increases as the city’s state-owned housing companies begin issuing new notices to tenants, according to housing officials.
The rent rises, affecting properties managed by Berlin’s seven public housing companies, will typically add between €15 and €30 per month to tenants’ bills. However, some larger flats could see increases of more than €100.
Officials stressed that existing rent caps and legal limits on increases would remain in place.
Housing providers say the move is necessary to cope with sharply rising construction and maintenance costs. According to the Association of Berlin-Brandenburg Housing Companies (BBU), repair expenses have increased by more than 93 percent since 2016, while rents across the state-owned housing sector have risen by only around 22 percent over the same period.
The decision has drawn criticism from Berlin’s election-winning Left Party, which argues the increases send the wrong signal during a housing affordability crisis. Party representatives have called for the rent hikes to be withdrawn.
State-owned landlords note that their average rents remain relatively low by Berlin standards, at roughly €7.25 to €7.55 per square metre excluding utilities.
READ ALSO: Average Berlin rents up by almost 7 percent since 2024Shops to close on Saturday while Berlin shoppers could face earlier disruptions
Shoppers in Germany are being urged to stock up today, as supermarkets and most stores will be closed for the German Unity Day public holiday on Saturday, followed by normal Sunday trading restrictions.
The advice is particularly relevant in Berlin and Brandenburg, where a two-day warning strike by retail workers on Thursday and Friday could lead to additional disruption just as many people make their final purchases before the long weekend.
The Verdi trade union has called on supermarket and retail staff to walk out amid an ongoing pay dispute. The union is seeking significant wage increases and a minimum starting hourly wage of €14.90 for retail employees.
As a result, shoppers may encounter longer queues, reduced opening hours and slower restocking in some stores. Verdi expects broad participation in the industrial action, raising the possibility of partially empty shelves at a time when demand is already high.
READ ALSO: 10 things you never knew about German reunification