VDA President Hildegard Müller regarding Federal Budget 2026

"The Federal Cabinet today adopted the government's draft federal budget for the 2026 fiscal year and the financial plan for 2025 to 2029. Financial planning security is of key importance for companies, but the 2026 draft budget - like the 2025 draft -falls short of industrial policy requirements.

Electricity prices in Germany are currently up to three times higher than in the US or China. These high electricity costs are putting a strain on our companies' international competitiveness. Furthermore, the ramp-up of e-mobility is being slowed because charging electricity remains too expensive. However, the reduction in electricity tax for all consumers, which was agreed upon in the coalition agreement and could lower prices, has not been budgeted for. This urgently needs to be improved – otherwise, the federal government will not only miss the opportunity for lower charging electricity prices and for strengthening small and medium-sized industrial enterprises.

The question of how to finance an industrial electricity price also remains open. Batteries and semiconductors, in particular, must be taken into account in the further design. Overall, small and medium-sized industrial enterprises must not be left out of any potential relief measures. A viable concept is needed for how electricity prices in Germany can be brought back to a competitive level. In addition to short-term relief measures, structural reforms and more energy partnerships are necessary.

A fundamentally positive aspect is that the 2026 draft budget provides for a reduction in grid charges and also provides significantly more funding for the ramp-up of the hydrogen economy. It is also welcome that the Federal Ministry of Research will be allocated a large budget for battery research and technology, and that the Federal Ministry for Economic Affairs and Energy will be provided with approximately €520mn for the industrial production of mobile and stationary energy storage systems. 

With a view to the urgently needed ramp-up of e-mobility, the federal government must immediately ensure that the extension of the vehicle tax exemption for electric cars until 2035, as promised in the coalition agreement, is implemented. It is crucial that this is ensured in the 2026 budget. Tax incentives can provide stimuli to purchase e-cars and effectively support the market ramp-up. The current regulation is already expiring at the end of the year - making it all the more urgent for consumers and businesses to get planning security in time.

It is also undisputed that Germany urgently needs a comprehensive infrastructure offensive. A modern, efficient infrastructure is a key location factor and crucial for economic growth and sustainable mobility. The draft budget should have sent a clear signal here - but unfortunately, this is not the case: Investments in road infrastructure in the current draft budget are unfortunately inadequate. The funding increases for road and bridge infrastructure, and especially for federal highways, at around €300mn compared to the 2025 draft, remain small. Furthermore, the funding cycle for road infrastructure announced in the coalition agreement will once again not be closed in the 2026 budget year.

At least the tender freeze at Autobahn GmbH was lifted today. With the investment funds released at short notice by the Budget Committee, Autobahn GmbH can now continue important projects and also initiate new ones."