A leading figure from the “Sahra Wagenknecht Alliance” (BSW) has publicly urged Germany’s governing coalition of the Christian Democratic Union (CDU) and Social Democratic Party (SPD) to significantly reduce electricity prices. Sahra Wagenknecht, leader of the BSW, argued that halving current rates is necessary to address the burden on consumers.
Speaking to Funke-Mediengruppe newspapers, Wagenknecht stated that while planned relief measures regarding electricity tax are welcome, they are insufficient to make electricity prices affordable again, particularly given Germany’s position as having some of the highest electricity costs in Europe.
Wagenknecht called for a fundamental shift in energy policy, proposing several concrete changes. These include reforming grid fees to prevent them from being passed onto consumers, placing electricity grids under public ownership, abolishing subsidies for renewable energy and lowering the value-added tax (VAT) on electricity to the reduced rate of seven percent, reflecting energy’s status as a fundamental necessity.
The call comes ahead of a crucial meeting of the CDU/SPD coalition committee scheduled for later this Wednesday at the Chancellery. The meeting is expected to be dominated by a dispute over planned cuts to electricity tax. Recent proposals from Finance Minister Lars Klingbeil (SPD) outline a permanent reduction for industries and agriculture, but not for private households and smaller businesses, a deviation from initial agreements within the coalition contract.
This proposal has faced considerable resistance within the CDU, with figures like Chancellor Friedrich Merz previously expressing support for broader relief measures encompassing all consumer groups, contingent on identifying suitable offsetting funding sources. The Finance Ministry estimates that extending the electricity tax reduction to all consumers would incur additional costs of 5.4 billion euros.