Chancellor Friedrich Merz (CDU) intends to clarify and enforce the electricity tax reduction for everyone, which was rejected during the budget negotiations with the SPD, during the next meeting of the Coalition Committee next Tuesday together with his coalition partner. This was reported by Bild, citing information from the Chancellor’s environment.
CDU General Secretary Franziska Hoppermann accused Finance Minister Lars Klingbeil (SPD) of being responsible for the broken promise in Bild. She stated that the finance minister is creative about inventing taxes but evades responsibility when it comes to concrete relief for everyone. Klingbeil had promised the reduction of the electricity tax in the coalition agreement. Now the question remains as to the value of that word.
Meanwhile, influential economic associations are increasing pressure on the government. Christoph Ahlhaus, Federal Managing Director of the BVMW, told Bild that the credibility of the Chancellor and the federal government is at stake if they fail to deliver on central election promises. He suggested that if the coalition buries the electricity tax reduction for everyone this week, no one will believe that this federal government truly wants to relieve the burden on the small and medium-sized enterprises.
Astrid Hamker, President of the CDU Economic Council, told the newspaper that it is not a good signal if relief for the broad middle class is promised, but then neither the repeatedly promised electricity tax reduction for everyone nor the complete equalization of cold progression occurs. She added that timely and serious consideration of the issue of subsidy reduction would have allowed for this. The Bundesrechnungshof lists a total of 32 negatively evaluated tax benefits in its June 2026 report, which cost the federal government approximately 12 billion euros annually. If previously agreed-upon savings in the social sector were subsequently withdrawn and a new tax was introduced, this would not help restore lost trust.
