CDU ministers advocate for reduced electricity taxes across the board
In a surprising turn of events, the German federal government is facing criticism for its decision not to reduce the electricity tax for all citizens and businesses as promised during the election campaign. The coalition between the Union and SPD, initially hailed as a promising start, has seen a setback due to this issue, with Schleswig-Holstein's Minister President, Daniel Günther, expressing little understanding about the prioritization of the mother's pension expansion over the electricity tax reduction.
Matthias Miersch, SPD faction leader, defended the decision of the coalition committee regarding the electricity tax, stating that it was kept under the financial reservation in the coalition contract. However, the SPD economic policy spokesman, Sebastian Roloff, believes that the discussion about the tax cut will still be held in the budget committee.
The CDU state premiers and trade associations have accused the government of breaking a promise, arguing that a universal electricity tax reduction was crucial to relieve costs for households and small businesses. Trade associations like the Federation of German Energy and Water Industries (BDEW) have criticized the decision, emphasizing that a tax cut for all would also promote investments in climate-friendly technologies.
Alexander Schweitzer, Rhineland-Palatinate Minister President, has expressed criticism towards the Chancellor regarding the financing of the rapid expansion of the mother's pension, stating that there is no money for the reduction of electricity tax for private households. The Association of German Trade and the Association of Wholesale and Foreign Trade (BGA) have sent a joint letter to Federal Chancellor Merz, urging him to keep the promises of the coalition and reduce the electricity tax for all companies.
Finance Minister Lars Klingbeil (SPD) argued that broad cuts would only be possible if money were saved elsewhere in the budget, which currently involves tightening the finances of lower-income groups. As a result, the government decided to reduce the electricity tax only to the European minimum level for industry, abandoning cuts for ordinary consumers who still pay a higher rate.
The coalition contract contains 'declarations of intent', but they will be realized to the best of the coalition's knowledge and conscience. The controversy over the electricity tax policy underscores the challenges faced by the new federal government in balancing its commitments and the constraints of budgetary priorities and political compromises within the coalition.
- The controversy over the electricity tax policy has become a hot topic in German politics, with the finance industry closely watching the developments as they could influence investor confidence in the country's energy sector.
- The Union and SPD coalition's decision to reduce the electricity tax only for the industry, not ordinary consumers, has drawn criticism from trade associations like the Association of German Trade and the Association of Wholesale and Foreign Trade, who argue that it breaks a promise to small businesses and households.
- The broader General-News community is following the unfolding events closely, as the outcome of the electricity tax debate could have implications for Germany's economic stability, energy transformation, and political dynamics within the coalition.
