Pressure is mounting on Germany’s governing coalition of the Union and SPD parties ahead of a key meeting this Wednesday. Trade unions are urging the government to honor its commitments and reduce the electricity tax for all consumer groups, as originally planned.
Stefan Körzell, a board member of the German Trade Union Confederation (DGB), emphasized to publications within the Funke-Mediengruppe that the ongoing dispute over the electricity tax represents a problematic start for the new government. He stated that the commitment to reduce the electricity tax for all was explicitly agreed upon as an immediate measure within the coalition agreement and urged swift action from the entire government.
Finance Minister and Vice Chancellor Lars Klingbeil (SPD) recently announced, during the presentation of his draft budget, that the electricity tax would be permanently reduced only for industry and agriculture, excluding private households and smaller businesses. This decision has been formally approved by the Federal Cabinet.
However, the coalition agreement between the Union and SPD stipulates a reduction of the electricity tax “for all” to the European minimum level as an immediate measure. Klingbeil and Chancellor Friedrich Merz (CDU) have cited budgetary constraints, with the Ministry of Finance asserting that a reduction for all groups would incur additional costs of 5.4 billion euros. Within the CDU and CSU, there are growing signs of dissent from Klingbeil’s proposed plan.
Körzell insists that the coalition agreement needs to be reconsidered during the upcoming meeting. He cautioned against framing the electricity tax reduction as a trade-off against vital investments or the social state. He underscored the need for relief from energy prices, a strong economy and social security for workers across the nation, calling for a forward-looking budgetary policy from both Union and SPD parties.