German business leaders express dismay at the government’s decision not to reduce the electricity tax for all, as initially promised in the coalition agreement.
The German government’s recent cabinet meeting has led to a sense of disappointment among the country’s economic representatives, who had been expecting a reduction in the electricity tax for all sectors, as initially agreed upon in the coalition contract. The reduction in the electricity tax was a key pledge made by the CDU and SPD parties in their coalition agreement, with the promise to lower the tax for all, including private households, trade and services.
However, the government has since announced that the reduction in the electricity tax will only apply to the industrial and agricultural sectors, with no reduction for private households, trade and services. This decision has been met with widespread criticism from the German business community, with many expressing their disappointment at the government’s failure to honor its earlier commitment.
Achim Dercks, the deputy managing director of the German Industry and Trade Association, was quoted as saying that the government’s decision is a great disappointment, as the high electricity prices in Germany are a massive burden for all sectors of the economy. Wolfgang Weber, the head of the Association of the Electrical and Digital Industry, also expressed his discontent, stating that the government’s decision is a very bad signal, as it goes against the central promise made in the coalition agreement.
The government’s justification for the decision is that the reduction in the electricity tax for the industrial and agricultural sectors is a necessary step to support these sectors, while the private households, trade and services will not benefit from the reduction due to a lack of financial means. This argument has, however, been met with skepticism by many, who believe that the government should have honored its earlier commitment to reduce the electricity tax for all sectors.
In a statement, the government’s economic minister, Katherina Reiche, explained that the government’s decision is a result of the need to balance the coalition agreement with the country’s financial reality. However, many in the business community are still expressing their disappointment and frustration at the government’s failure to honor its earlier commitment, with some even calling for the electricity tax to be abolished altogether, as initially agreed upon in the coalition contract.