Pressure Mounts on Chancellor and Finance Minister to Implement Coaliton’s Pledge to Reduce Electricity Tax
The German government’s draft budget has failed to indicate a reduction in the electricity tax for citizens and small businesses, prompting growing pressure on the Chancellor and Finance Minister to implement the coalition’s pledge to do so.
According to the Christian Democratic Union’s (CDU) parliamentary group leader, Jens Spahn, the goal of the coalition is to reduce the electricity tax for all and make it a permanent measure. Spahn stated, “We will relieve the burden of energy costs on citizens” adding that the coalition is discussing how to achieve this goal as soon as possible, given the budget constraints.
Andreas Lenz, the head of the CDU/CSU parliamentary group in the Economic Committee, emphasized the need for the electricity tax reduction to benefit both citizens and the middle class. The topic is expected to be on the agenda of the coalition’s meeting next Wednesday, according to information from the Chancellor’s office.
Katharina Dröge, the leader of the Green Party, criticized the Finance Minister, Friedrich Merz, for breaking his promise, saying that he is leaving families and the middle class in the lurch. Dröge stated, “The reduction of the electricity tax would be extremely important to make life in Germany more affordable again.” She accused the government of prioritizing expensive gifts for special interest groups over the needs of the general public.
Christoph Ahlhaus, the head of the German Mittelstandsverband BVMW, expressed his disappointment, saying, “A government that first accumulates a billion in debt and now says, ‘Sorry, middle class, the money is gone’ loses the trust of the performance-oriented.” He added, “This way, the economic turnaround will crash into a wall.”
The Finance Ministry estimates that reducing the electricity tax for consumers would cost 5.4 billion euros in 2026, rising to 5.8 billion euros by 2029. The ministry has stated its willingness to discuss any possible cuts in expenses to create room for further relief measures.