German Bundesrat blocks 1000-euro relief bonus; defense ministry reports 90% response to military questionnaire
Germany's Bundesrat on Friday unexpectedly blocked a government plan to allow employers to pay workers a tax-free bonus of up to 1,000 euros, citing costs that would fall largely on states and municipalities. The defense ministry reported that over 90% of young men contacted have responded to the new mandatory military service questionnaire, calling the rollout successful. The government said it would seek talks with states and the coalition committee would discuss next steps.
Germany's Bundesrat on Friday unexpectedly rejected a government plan to allow employers to pay workers a tax-free bonus of up to 1,000 euros, a measure that had already been passed by the Bundestag. The bonus was intended to be available until June 30, 2027. The tax exemption would cost the state up to 2.8 billion euros, and states argued they would bear nearly two-thirds of the revenue loss with no compensation.
Vice government spokesman Steffen Meyer said the government regrets the decision and will hold talks with states. The coalition committee is to discuss next steps next week. BDA chief executive Steffen Kampeter said the bonus would be an additional burden for many companies. Social Association Germany head Michaela Engelmeier expressed disappointment, saying the bonus would have helped many workers. Left party co-leader Ines Schwerdtner called it "the most incompetent federal government of all time."
Separately, the defense ministry reported that over 90% of contacted young men responded to the new mandatory military service questionnaire. The ministry said 86% returned the questionnaire within four weeks; additional responses after reminders pushed the rate above 90%. The ministry stated that "contrary reports in recent days are not correct." Non-response is an administrative offense with a maximum fine of 250 euros. As of April 29, 2026, over 206,000 letters had been sent to all genders. The response rate among women was 3%. The goal is to increase active Bundeswehr personnel from 184,000 to 255,000–270,000 by 2035.