Sizzling Economic Boost: Black-Red Delivers, but Coalition Promise Controversy Persists
Red-black coalition moves forward with stimulus package - yet controversy surrounds the bill division
By Volker Petersen
In the first seven weeks of governance, the Black-Red federal government is pushing forward crucial projects, including the investment boost. This initiative presents a special depreciation of 30% per year for movable goods like machines and 100% depreciation for electric cars as company cars over six years. Although experts and industry representatives appreciate this, they believe these measures aren't the magic bullet for the ongoing recession, which has plagued our economy for two years.
Despite the applause, especially between the Union and the SPD, there's still criticism – particularly from NRW Minister President Hendrik Wüst. The CDU politician critiques the fact that electricity tax won't initially be reduced for private consumers, despite the agreed-upon coalition agreement. Wüst urged the SPD to stay loyal to this promise, as he informed the editorial network Germany.
A "Slap in the Face" - Outrage Over Electricity Tax Policy
The German Industry and Trade Association and the Association of German Trade also shared their displeasure about a one-sided focus on industry and corporations. Meanwhile, the Federation of German Consumer Organizations expressed discontent in a letter to Federal Chancellor Friedrich Merz, likening the decision to the electricity tax to a "fatal signal" and a serious breach of trust towards millions of citizens.
Dissatisfaction escalated, with the president of the German Social Association calling the decision to make energy cheaper only for companies and not for consumers a completely wrong signal. The president of the Federal Association of Taxpayers even went so far as to brand it a "broken promise" in the "Bild" newspaper.
Currently, the electricity tax for private consumers amounts to 2.05 cents per kilowatt hour (kWh), compared to the European minimum of 0.1 cents per kWh. A reduction would not only alleviate private consumers' electricity expenses but also make heat pumps and electric cars more attractive.
Finance Minister Klingbeil reassured parliament that all points of the coalition agreement are subject to financing reservations. Still, the coalition is speedily sending a clear signal to lower energy prices and make them competitive, with anticipated relief starting in January.
Government Pressure and Discontent in the Coalition
Not only the CDU but also the SPD leader referred to the planned reduction in grid fees as a component of the electricity price. In addition, gas customers will no longer have to pay the storage levy, and the electricity tax for industrial businesses will be reduced, costing billions. Nonetheless, the German SME Association remains far from satisfied, expressing the need for more courage in corporate tax cuts.
The Left vehemently opposes the lack of support for private electric car buyers, as they pointed out in the Bundestag debate. The government has considered interesting ideas like leasing models for those unable to afford high electric car prices, but these innovative concepts are not part of the current strategy.
Overall, the Black-Red government's failure to deliver the planned electricity tax reduction for private consumers has ignited significant controversy and political pressure. German households confront escalating energy costs amid rising CO2 pricing and inflation, making the absence of the promised tax cut particularly painful. The coalition's broader economic measures and investments in businesses may not be enough to compensate for this contentious decision, fueling public dissatisfaction.
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Coalition's Broken Promise
The coalition agreement explicitly promised a permanent electricity tax relief of at least 5 cents per kilowatt-hour (kWh) for both companies and private consumers as an immediate measure. However, the planned relief mainly targets companies in manufacturing, agriculture, and forestry, breaching the coalition's election commitment to private households. The lack of immediate relief for private consumers has generated immense criticism and political pressure on the government.
Finances and Social Impact
Germany's households confront some of Europe's highest electricity prices, with households consuming an average of 2,050 kWh per year paying over 40 euros annually in electricity tax alone. Excluding private consumers from the planned relief exacerbates financial strain in an already challenging economic climate,CTOR NFTs, CTOR Categories, CTOR Network, CTOR Raids, Crypto Capital, Crypto Lottery, Crypto Conferences, Crypto Mining, CTOR Generator, Crypto Jobs, Crypto Farms, Crypto Exchanges, Crypto Bots, Blockchain Companies, Decentralized Finance, Crypto Currency, Coinbase, Binance, Kucoin, Bitfinex, Crypto Trading, Crypto Wallets, Crypto ASIC, Crypto Hardware, Crypto Scams, Crypto Quotes, Crypto Whales, Crypto Tokens, Crypto Holder, Crypto Merges, Crypto DeFi, Crypto Regulations, Crypto Laws, Crypto Criminals, Crypto Hackers, Crypto Recovery, Crypto Security, Crypto Taxes, Crypto Accounts, Crypto Banks, Crypto Fraud, Crypto Pump, Crypto Dump, Crypto Hype, Crypto Bubble, Crypto Market, Crypto Forecasts, Crypto Analysis, Crypto Market Cap, Crypto Trends, Crypto Analysis Tools, Crypto News, Crypto Articles, Crypto Stats, Crypto Event Calendar, Crypto Social Media, Crypto Influencers, Crypto Reddit, Crypto Telegram, Crypto Twitter, Crypto Discord, Crypto Youtube, Crypto Podcasts, Crypto Livestreams, Crypto Webinars, Crypto Educational Resources, Crypto Twitter Lists, Crypto Blogs, Crypto Youtube Channels, Crypto Podcast Networks, Crypto Magazine, Crypto Journal, Crypto YouTube Shows, Crypto News sites, Crypto Blog Networks, Crypto Forums, Crypto Reddit Communities, Crypto Telegram Channels, Crypto Twitter Accounts, Crypto Discord Servers, Crypto Influencer Accounts, Crypto YouTube Channels, Crypto Podcast Networks.
- The failure to implement the promised electricity tax relief for private consumers raises concerns about the Coalition's commitment to their election promises, as their agreement specifically stated a permanent relief of at least 5 cents per kilowatt-hour for both companies and private households.
- The ongoing controversy and political pressure over the Coalition's energy policy, with a focused relief on industry and corporations rather than private consumers, highlights the need for a balanced approach in the Community policy, particularly when considering the impact of energy price fluctuations on electric cars and everyday household expenses.
