Discussions are underway regarding potential funding mechanisms for a proposed reduction in electricity tax, with concerns raised about the feasibility of offsetting the costs through reforms to the citizen’s income benefit program.
Thorsten Frei, Head of the Federal Chancellery, expressed reservations regarding the likelihood of securing broad coalition support for such a financially linked approach in an interview with “Welt”. He emphasized that consensus within the governing coalition is paramount, stating that the practicality of any proposed solution is secondary to its acceptability across all participating parties.
Frei acknowledged the possibility of exploring alternative funding options, but underscored that any significant policy changes require unanimous agreement. He reiterated that a solution must be found through collaborative effort.
While time remains before the cabinet approves the budget at the end of July and before the plan is presented to parliament in the autumn, Frei cautioned that finding a viable solution will be challenging. The current budget framework was established through existing compromises, making adjustments difficult. Nevertheless, he stated that an open dialogue and consideration of all possibilities remains ongoing.