The German government remains steadfast in its commitment to introducing a subsidized “industrial electricity price” aimed at alleviating the burden on energy-intensive industries, despite simmering tensions within the ruling coalition. Economics Minister Katarina Reiche (CDU) emphatically denied any prospect of delays, asserting in an interview with the Handelsblatt that the initiative remains on track for implementation.
The planned industrial electricity price, fixed at five cents per kilowatt-hour, is slated to be accessible to companies from 2027, with retroactive compensation beginning in 2026. Reiche highlighted the government’s utilization of available regulatory flexibility within European Union aid law to bolster the nation’s industrial base and prevent relocation of businesses. She framed the impending introduction as a significant achievement, the result of protracted negotiations.
However, Reiche’s declarations come amidst a backdrop of growing friction within the three-party coalition of CDU, CSU and SPD. The minister’s recent reluctance to concede ground on revisions to the Bürgergeld (basic income) regulations has drawn criticism from within the SPD. Dirk Wiese, the party’s parliamentary managing director, publicly questioned Reiche’s level of engagement, suggesting she demonstrates less commitment to supporting industry than she does to defending social welfare policies. This indirect jab underscores the delicate political balancing act required to appease diverse interests within the government.
The initiative, while welcomed by industry leaders concerned about competitiveness, also faces scrutiny from those who argue that substantial subsidies for large corporations divert resources from social programs and potentially distort market dynamics. The government’s justification-preventing job losses and securing value creation-must be weighed against the broader economic and social consequences of such targeted interventions. The coming months will likely see intensified debate surrounding the industrial electricity price, exposing the inherent tensions between industrial protectionism and the demands of social equity within Germany’s complex political landscape.
