The Thuringia Minister-President, Mario Voigt of the CDU, is placing increasing pressure on the federal government regarding electricity taxation and reform of financial relations between the federal government and the states (Länder). In remarks to the news portal T-Online, Voigt emphasized the urgency of a reduction in electricity taxes applicable to all regions. He expressed hope that the Bundestag, following the summer recess, could identify a solution during the upcoming budget deliberations, with implementation mandatory by the 2027 federal budget.
Voigt commended Federal Chancellor Friedrich Merz (CDU) for demonstrating a commitment to collaborative policymaking between the federal government and the states. However, he stressed the need to translate this commitment into tangible solutions to existing challenges. He criticized a perceived disconnect, stating that decisions made in Berlin often disregard the consequences for local municipalities and state governments.
Voigt argues the situation necessitates a comprehensive reform of the state and a restructuring of interstate financial arrangements. He underscored the principle of “who orders, pays” suggesting a potential compensatory mechanism where states are initially supported for losses incurred due to tax reductions. He elaborated that if economic growth returns, states could then contribute to the federal budget. Furthermore, Voigt highlighted the issue of Gewerbesteuer (trade tax) revenues, observed to predominantly flow westward due to a relative lack of corporate headquarters in eastern regions, calling for a discussion on addressing this imbalance.
