Politics · Germany · 8 hrs ago
German conservatives reject planned tax on plastic packaging
Thorsten Frei, leader of Germany’s conservative Union bloc, rejected the planned tax on plastic packaging.
The tax was part of negotiations between the Union and the centre-left SPD over Germany’s 2027 federal budget.
The proposal would charge companies €550 for each tonne of plastic used in packaging from July 2027.
Its stated aim was to encourage less plastic use, while the government also expected revenue for the budget.
The SPD says the plan is still under discussion, and party leader Matthias Miersch points to a draft proposal.
If the tax is dropped, the budget would lose about €670 million in expected revenue, according to reports on the negotiations.
The Union has been asked to suggest another way to close the gap, with final budget discussions due to continue this week.
Thorsten Frei said the Union would not support the planned tax on plastic packaging, while the SPD said coalition talks on the measure were continuing.
The disagreement comes as the coalition makes final preparations for Germany’s 2027 federal budget.
If the tax is dropped, about 670 million euros in expected revenue would need to be replaced, according to Tagesschau and n-tv.
A draft plan would charge 550 euros for each tonne of plastic used in packaging from July 2027.
The SPD says it wants the tax to reduce plastic use and is calling on the Union to propose other ways to fill the budget gap.
- Who
- Thorsten Frei, head of the CDU/CSU parliamentary group, rejected the tax. SPD leaders Matthias Miersch and Carsten Schneider said talks were continuing and called for further proposals.
- What
- Frei rejected a planned tax on plastic packaging. The SPD said the proposal was still under discussion.
- When
- Frei made the remarks on 8 November 2026. The reports were published on 8 and 9 November.
- Where
- In Germany, during talks on the 2027 federal budget.
- Why
- Frei said the tax would have harmful economic and environmental effects. The SPD says it could help reduce plastic use and provide budget revenue.
The CDU/CSU Union
The SPD
Tax's status
The CDU/CSU Union
Frei said the tax would not be introduced.
The SPD
Miersch said a first draft existed and the proposal was not off the table while discussions continued.
Reasoning
The CDU/CSU Union
Frei argued the tax would have the wrong economic and environmental effects.
The SPD
Miersch said the tax should be designed to have a steering effect and reduce plastic use.
Budget consequences
The CDU/CSU Union
The Union opposes the planned tax, leaving expected revenue to be addressed in budget talks.
The SPD
Schneider said the Union had a duty to offer other proposals to close the budget gap.
The coalition committee agreed on the planned plastic tax, according to Spiegel.
The government’s draft budget was based on a decision that included plans for the tax.
Frei rejected the tax, while Miersch said coalition discussions were continuing.
The budget committee’s final review session was due to begin.
- Proposed rate
- 550 euros per tonne of plastic in packaging
- Planned start
- July 2027
- Estimated 2027 revenue
- 805 million euros, according to t-online
- Estimated annual revenue from 2028
- Nearly 1.5 billion euros, according to t-online
- Reported budget gap if tax is dropped
- About 670 million euros, according to Tagesschau and n-tv
4 sources
What people are saying
Die Plastiksteuer machen wir nicht, weil sie eine falsche nicht nur ökonomische, sondern auch ökologische Wirkung hätte
Und insofern ist das alles nicht vom Tisch
Wir wollen das Ganze zielgerichtet, dass es auch eine Lenkungswirkung gibt und darüber muss auch im Parlament natürlich diskutiert werden
Solide Finanzpolitik gerade in diesen Jahren und in diesen Tagen ist entscheidend, und deswegen hat die Union da auch eine Verpflichtung, andere Vorschläge zu machen