Energy costs: coalition decision for electricity tax causes trouble

The economy and consumer associations are upset, the opposition is outraged and the government is trying to appease: The leaders from the Union and SPD must defend their no to a electricity tax reduction for everyone against violent criticism from all directions on the day after the coalition committee. “We can only spend the money we have,” said Chancellor Friedrich Merz (CDU). Like his Vice Chancellor Lars Klingbeil (SPD), he promised further relief as soon as the financial scope for it. CSU boss Markus Söder even gave a date for this: the aim of the aim is to catch up with the tax reduction for everyone on January 1, 2027.

Did the coalition broke your word?

In the coalition agreement, Schwarz-Rot had promised: “For quick relief by at least five cents per kWh (kilowatt hour), we will reduce electricity tax for everyone as quickly as possible and reduce the transfer network charges for everyone.” However, there was a financing reservation. Now only the industry as well as agriculture and forestry are relieved.

The government speaks of potentially more than 600,000 companies. The German Chamber of Commerce and Industry estimates that only a maximum of 15 percent of the companies benefit from the reduction in electricity tax.

For private households, the relief that has already been decided remain in other ways: with the network charges and the gas storage levy. According to the federal government’s calculations, everything adds up to ten billion euros.

The chairwoman of the Social Association of Germany (SOVD), Michaela Engelmeier, nevertheless spoke of a “fatal signal” for the citizens. “You need noticeable relief, especially in times of high living costs,” she told the German Press Agency.

Business associations run storm

The Central Association of the German Crafts (ZDH) even accused the coalition of a breach of trust. “The electricity tax reduction for all companies was not announced somewhere, but was recorded in writing several times and binding – in the coalition agreement, in decisions of the previous coalition committee and in the so -called relief package of the Federal Government,” said Association President Jörg Dittrich.

The coalition agreement also contains another clause that relieves the coalition on the accusation of the broken word: the subject of financing. He says that the promises from the coalition agreement only apply if the money is there. Merz, Klingbeil and Co., the Chancellor emphasized that the government wanted to do their work “with honesty”. “Our public households will come under pressure in the next few years, they will hear the word consolidation much more often.”

How is the electricity tax reduction going now?

Postponed means not lifted. As soon as there is money, the government wants to try to reduce electricity tax for everyone. According to the Federal Ministry of Finance, a reduction in electricity tax would cost around 5.4 billion euros in the coming year.

The only one who caught a date for everyone for everyone was the day after the coalition committee CSU boss Söder. The tax reduction for everyone should now “be fixed up to 1,1. 27 with financial scope that still needs to be developed”. The money could come from the reform of the civil allowance “and also for other social areas” or through the “clear change of direction in migration”.

Söder’s date does not appear in the result paper. The CSU boss was still sure that his plan is realistic. “The will is 100 percent there and the result is very, very possible.”

Who emerges from the coalition committee as a winner?

The fact that Söder was good courage after the coalition committee is also due to the fact that he was the only real winner of the more than five -hour session in the Chancellery – together with the mothers of the children born before 1992. The expansion of the so -called mother’s pension – a favorite project of the CSU – should come a year earlier than accepted: on January 1, 2027. “If a technical implementation is only possible at a later date, the mother’s pension will be paid retrospectively,” says Union and SPD result paper.

The pension insurance had recently informed the members of the committee in writing that implementation due to extensive individual claims tests was only possible in early 2028. In the case of the extended mother’s pension, the recognized child -rearing period in the statutory pension insurance will also be extended for children born before 1992.

What does that mean for coalition peace?

Before the coalition committee meeting, the electricity tax had developed into the first real nail test for the black and red coalition almost two months after taking office. Merz had got pressure from his own ranks to expand the electricity tax cut to further payers. The SPD reacted acidified and accused the Union “disturbance”. Memories of the dark traffic lights that were characterized by arguments and distrust became awake.

Merz has now prevailed against the critics of the cabinet decision in the Union. Everything stays the same. It remains to be seen whether this can really strengthen the cohesion of black and red. In any case, the dispute was a first warning signal for the Chancellor. Because that is exactly what he doesn’t want: dispute that overlaps everything.

On the day after the coalition committee, he therefore tried a conference of the Volks- und Raiffeisenbanken, in which his finance minister Klingbeil also participated in demonstratively good atmosphere. “Unlike one or the other, thinks and writes and talks: We work really well together in this coalition,” he said.