Thuringia’s Minister-President Mario Voigt has intensified calls for the federal government to expedite action on electricity tax relief and reform the system of financial relations between the federal government and the states (Länder). In remarks to the news portal T-Online, Voigt emphasized the urgency of a comprehensive electricity tax reduction for all consumers. He expressed hope that the Bundestag, after its summer recess, will identify a solution during upcoming budget deliberations, with the reduction firmly integrated into the 2027 budget.
Voigt acknowledged the stated intention of federal leader Friedrich Merz to foster collaborative policymaking between the federal government and the Länder, praising the commitment to shared governance. However, he stressed the critical need to translate that intent into tangible solutions addressing existing challenges. He criticized a perceived disconnect between decisions made in Berlin and their impact on local communities and state governments, stating there has been a pattern of decision-making that neglects the consequences for regional entities.
Voigt advocated for a fundamental “genuine state reform” arguing for a realignment of financial responsibilities between the federal government and the Länder. He underscored the principle of “who orders, who pays” proposing a mechanism where states initially compensated for losses stemming from tax cuts, with the understanding that they would later contribute to the federal government’s revenue once economic growth rebounds. Furthermore, he raised concerns about the issue of trade tax, highlighting the flow of revenue westward due to a lack of company headquarters in eastern regions.