The German cabinet has approved changes to the system for returning empty drinks containers for recycling, after the EU Commission said the current packaging law is illegal.
A government statement said under the changes, a deposit will apply to cans and bottles of mineral water, soft drinks, beer and cocktails. Containers for milk, fruit juices, wine, and "ecologically friendly" packaging such as cartons, will be exempt from a deposit.
Under Germany's current recycling law, consumers pay a deposit on cans and plastic bottles, which is repaid when they are returned to the point of sale.
Foreign beverage makers complained the system discriminates against imported drinks and that some shops forced them to change their containers.
Last month the EU Commission gave the German government three months to change the law before it started legal action.
Under the amended system, the deposit will be 25 cents, regardless of the container's size. Currently, it is 25 cents for one liter and 50 cents for 1.5 liters.
In future, supermarkets and other retailers will be forced to accept any used containers, even if they did not sell them in the first place. Consumers have complained that the current system means they have to return containers to the shop where they were bought.
The proposed changes, expected to be approved by both Upper and Lower Houses next week, will be effective by the end of the year.