Coalition debate over electricity tax finds no commitment from Merz - Merz will not participate in the alliance for the electricity levy imposition
In a recent turn of events, there has been no direct report of a coalition dispute over the Power Tax involving German Chancellor Friedrich Merz (CDU) and Luxembourg's Prime Minister Luc Frieden. Although these political figures have been in the spotlight, their interactions have primarily revolved around international diplomacy rather than specific domestic tax disputes.
Last week, Merz and Frieden held a press conference in Berlin, discussing international issues such as the situation in Gaza and broader European concerns. However, there is no explicit mention in available sources of a direct coalition dispute or a power tax issue between them [3].
The focus of Merz's policy priorities has been on foreign policy rather than energy or tax disputes. He has been actively involved in supporting humanitarian efforts in Gaza, among other international diplomatic matters [2][3].
While coalition disputes over energy or tax policies are not uncommon in German politics, especially with the challenges of coalition governance involving the CDU and other parties, there is no current, verifiable report from major news sources of a specific dispute over a "Power Tax" involving Merz and Frieden in Berlin as of July 2025.
In their coalition agreement, the CDU/CSU and SPD agreed to reduce the power tax "as soon as possible" for "all" [1]. Merz's government has already enacted relief measures for private households and many businesses, and last week, the cabinet decided to reduce the power tax for the manufacturing industry, agriculture, and forestry [2].
However, discussions about potential improvements for private households and further discussions about the power tax will take place tomorrow in the coalition committee and from next week in parliament [2]. Merz has not committed to going beyond these relief measures, stating that discussions would take place in the coming days [2].
The government is currently in the budget planning for the year 2026, and Merz has referred to potential changes in budget negotiations in the Bundestag next week [1]. These discussions will take place in Berlin.
**Summary Table**
| Topic/Event | Involved Figures | Location | Status (as of July 2025) | |-------------------------------------|-------------------------------------|------------|----------------------------------| | Diplomatic talks on Gaza, EU issues | Friedrich Merz, Luc Frieden | Berlin | Ongoing, but not tax-related | | Coalition dispute over Power Tax | No direct report | N/A | Not reported in current sources |
In conclusion, there is currently no public or news-reported disagreement or coalition dispute over a "Power Tax" involving Friedrich Merz, the CDU, and Luc Frieden in Berlin. Their recent meetings have focused on international diplomacy, particularly concerning Gaza and EU matters [2][3]. The discussions about the power tax and potential improvements for private households will take place in the coming days.
The Commission has decided to initiate a procedure for the adoption of a proposal for a Council regulation on the common organization of the market in electricity, as part of the broader policy-and-legislation landscape, signifying a shift towards policy-making on energy markets. Meanwhile, the ongoing foreign policy discussions between German Chancellor Friedrich Merz and Luxembourg's Prime Minister Luc Frieden, revolving around general-news topics like the situation in Gaza and broader European concerns, have not been accompanied by reports of any coalition dispute or power tax issue [3].
