The leadership of Germany's coalition government has agreed on key points regarding pension reform, vehicle bans, and electric vehicle subsidies after extensive negotiations. The coalition, comprising CDU, CSU, and SPD, has decided to keep the current pension reform draft unchanged, emphasizing that the existing agreements will stand, with a supplementary text aimed at addressing opposition from the Junge Union (JU). The government plans to implement a comprehensive pension reform in 2026, involving a pension commission tasked with proposing measures by mid-2026 to ensure long-term financial stability of the pension system. The reform aims to maintain the pension level at 48% until 2031, with potential adjustments including a development of the sustainability factor and a new 'catch-up' factor to balance future costs. The coalition also discussed increasing the retirement age and expanding the inclusion of other income sources and groups into the pension system, alongside promoting private and occupational pensions, supported by a 10 billion euro federal investment. In addition to pension reforms, the coalition agreed to uphold the planned EU ban on new combustion engine cars starting in 2035, with efforts to allow high-efficiency internal combustion engines beyond that date. A new purchase subsidy for electric and plug-in hybrid vehicles was also agreed upon, targeting low- and middle-income households, with subsidies of up to 4,000 euros, funded by the climate and transformation fund. The negotiations lasted six hours, concluding in late-night discussions. The coalition leaders expressed determination to proceed with these plans despite internal criticisms, especially from the Junge Union, which has warned about the high costs of pension increases. Chancellor Friedrich Merz and SPD co-leader Lars Klingbeil both expressed confidence that the agreements would be implemented, with Klingbeil affirming that the 'limit' for pension expenditures is set, and Merz emphasizing the necessity of reform to address longstanding issues in Germany's social security system.