Markus Söder, the premier of Bavaria and leader of the CSU, used the surge in fuel and gasoline prices to call for a fundamental discussion about CO₂ pricing.
He said that if the Iran crisis continues and the “sharp sword of antitrust law” has not yet achieved a price drop at the pumps, a temporary reduction of the CO₂ tax on fossil fuels should be considered. “If nothing changes within two weeks, we have to think about CO₂” Söder told the German news channel Welt TV on Thursday.
Söder warned that, in the present phase, scarcity of fossil fuels could lead to “extremely high prices”. He argued that Germany and Europe would then be at a significant disadvantage compared to China and other countries because of the very high CO₂ charges. He therefore suggested suspending the tax until the crisis subsides, emphasizing that it would not last three years.
He added that, in the long term, CO₂‑free energy solutions-including emerging technologies such as nuclear fusion-must be pursued. However, as a short‑term relief measure, a temporary pause could provide substantial easing of costs.
For Söder, this suspension would only be the initial step toward a broader debate on the future of CO₂ pricing. “We must rethink how the entire energy crisis could affect the continent’s economy, and move in a more flexible direction” he said. He noted that the current restrictive Green Deal mindset should be reconsidered to keep the economy viable.
