The German coalition government, comprising CDU, CSU, and SPD, has agreed on key measures following intensive negotiations. The coalition reached a compromise on pension reforms, maintaining the current pension level and establishing a new pension commission to propose further reforms by mid-2026. The reform aims to stabilize the pension system, with plans to develop a comprehensive overhaul of the entire retirement system, including adjustments to the sustainability factor and potential increases in retirement age. The coalition also plans to keep contribution rates stable for the next decade and incorporate additional income groups, such as civil servants, into the pension system. Despite resistance from the Junge Union, which opposes the planned pension increases beyond 2031 due to cost concerns, the government intends to proceed with the current pension package, emphasizing that there will be no pension cuts, only moderated increases. A detailed accompanying text promises to address the long-term financing of the pension system, including reforms to ensure a sustainable pension level through various measures like the development of a total pension level across all pillars and possible extension of working life. In addition to pension reforms, the coalition agreed on policies related to the phase-out of combustion engines, with a focus on promoting electric vehicles through subsidies and incentives. The government plans to support private and occupational pension schemes, including a ten-billion-euro investment in private retirement savings, partly funded by the federal government's stake in major corporations. The agreement reflects a broader strategy to address economic and social challenges, including climate change, with a focus on balancing fiscal responsibility with social security and environmental sustainability.