German coalition government’s energy tax plans draw criticism and defense.
The German Social Democratic Party (SPD) has rejected criticism from the Christian Democratic Union (CDU) regarding the country’s finance minister, Lars Klingbeil, who has decided to only reduce the energy tax for the production sector, effective from the start of the new year. According to the SPD’s designated general secretary, Tim Klüssendorf, the measures to lower energy prices for the industry, business and private households were carefully coordinated within the coalition.
Klüssendorf emphasized that the criticism leveled against Klingbeil by the CDU is therefore not justified. He expressed hope that the criticism is not actually directed at the Chancellor and the CDU’s Minister of Economics.
The German federal cabinet has agreed to adopt the draft of the federal budget for 2025 and the key points for the budget of 2026, which includes a decision to initially reduce the energy tax only for the industry, starting from January 1, 2026. Consumers will not benefit from the tax reduction, but will instead pay a smaller share of the costs for network expansion. Furthermore, gas consumers may benefit from the planned shift of the gas storage fee to the Climate and Transformation Fund, which is primarily financed by the revenue from the carbon price on oil and gas.