A simmering dispute over aviation tax is poised to erupt within Germany’s ruling coalition, with the conservative Union bloc pushing hard for a reversal of recent increases despite significant financial implications. The issue is slated to be a central point of contention at the next coalition committee meeting on November 13th, according to reports in the “Rheinische Post.
The Union’s insistence on lowering the air transport tax stems from a growing concern over the health of Germany’s aviation sector. Representatives from the CDU and CSU contend that the current tax burden is exacerbating existing challenges, including dwindling flight routes and declining passenger numbers, particularly in eastern Germany where air travel is demonstrably shrinking and passengers are opting for routes across borders, such as from Dresden to Prague.
The pushback highlights a widening gulf within the governing alliance. While the tax increase, implemented this year, was justified as a measure to address budget deficits and incentivize a shift towards more environmentally friendly alternatives, the Union argues it is unduly harming the industry’s competitiveness. The potential rollback, however, carries a significant price tag – an estimated revenue loss of approximately €340 million.
The move exposes a broader dilemma for the coalition government. While committed to ambitious climate targets – the transport sector has consistently failed to meet its CO2 reduction goals mandated by federal climate protection laws since 2021 – there’s increasing recognition that pursuing those goals through punitive taxation could have unintended consequences for regional economies and critical infrastructure.
Critics within the SPD are likely to oppose the move, raising concerns about the environmental signal it sends and the potential for backsliding on decarbonization efforts. The upcoming coalition committee meeting is expected to be intensely debated, with the future trajectory of German aviation policy hanging in the balance. The debate underscores the complex political tightrope the government walks between environmental responsibility and economic viability.