German Chancellor Friedrich Merz has admitted that the electricity tax could be reduced as early as next year. However, his statement contrasts with the stance of Finance Minister Lars Klingbeil, who in recent days has questioned the possibilities of long-term financing for such a measure. Welt ↗
The dispute concerns the relief on electricity costs contained in the coalition agreement between the Union and the Social Democratic Party of Germany. The federal states are demanding that the promised tax reduction be introduced as soon as possible and that it apply to all consumers.
Klingbeil pointed to the issue of financing. According to him, it is not clear how permanent coverage for the loss of revenue from the reduced tax could be ensured. It is precisely these differing positions of the chancellor and the finance minister that are deepening tensions within the coalition. Welt ↗
Berlin's governing mayor Kai Wegner also joined the states' demands. He stated that energy costs must fall. At the same time, he supported the swift implementation of the commitment that the coalition parties set out in the agreement. Tagesspiegel ↗
Merz has so far not said by how much the tax could be reduced, nor what financing model the government would choose. Further developments will depend on negotiations between the chancellor, the finance ministry, and the federal states.
Merz admits electricity tax could be reduced next year
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