Discussing Matters with Maischberger: Approaching with a Positive Outlook
In the political landscape of Germany, a promise made to private households regarding lower electricity taxes has yet to be realised. Despite the coalition agreement's commitment to a permanent relief by reducing the electricity tax for all, the government's budget plan has only provided relief for companies in manufacturing and agriculture, leaving consumers and small businesses unaided [1].
Federal Chancellor Friedrich Merz, in his two-month tenure, has suggested that if there is more room in the budget for electricity taxes for private households, they will act upon it. However, as of now, the tax remains at 2.05 cents per kilowatt-hour for households, far above the EU minimum of 0.05 cents, resulting in no financial benefit from the promised cuts [1][3].
The high electricity taxes, coupled with taxes and levies making up about 32% of the electricity price, have resulted in an average of 39.69 cents per kilowatt-hour in mid-2025. Given that households consume on average around 2,050 kilowatt-hours annually, the absence of tax cuts amounts to over 40 euros extra yearly per person, and up to 200 euros for families [1][3].
Calls for expanding tax relief to households and small and medium-sized enterprises (SMEs) have been made within the political sphere, with CDU/CSU parliamentary leaders, including Merz’s party, advocating for a broader and comprehensive reduction of the electricity tax. However, as of now, these remain proposals, and there has been no immediate change in policy to extend tax relief to private households [2].
Meanwhile, Merz has focused on other key issues, such as strengthening the economy, with the aim of relieving about 600,000 companies. He also aims to make Germany strong and performance-ready again, with important goals for the next four years [4].
In terms of foreign policy, Merz has pledged to take the lead and do well in the coming years and decades, with a current focus on ending the war in Ukraine. Germany has agreed to increase its NATO payments to five percent of its gross domestic product within ten years, with 3.5 percent going to defense and 1.5 percent to infrastructure [5].
However, the current status of lower electricity taxes for private households in Germany remains unchanged, with households facing high electricity taxes and costs despite political debate and public expectation [1][2][3]. The government has not yet announced a timeline for implementing broader tax relief, and the burden of high electricity costs persists.
- Amidst a need for broadened relief, politics in Germany has seen calls for an expansion of the electricity tax reduction policy to include private households and small-medium enterprises.
- Despite the ongoing discourse and public anticipation, the community policy concerning lower electricity taxes for private households in Germany remains stationary, leaving households still facing burdensome electricity costs.
