Wust criticizes Klingbeil for withdrawing electricity tax exemptions
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In the financial plans of Minister Klingbeil, only half of the announced reduction in electricity tax is executed. While industry breathes a sigh of relief, crafts, trade, and private consumers are left in the lurch. The NRW Minister President, Wüst, accuses the SPD politician of breaching the coalition agreement.
NRW Minister President Hendrik Wüst has not minced words when criticizing SPD Finance Minister Lars Klingbeil for failing to provide for a general reduction in electricity tax in his budget proposal. The CDU state leader has issued a stern warning to Klingbeil against breaking the coalition agreement. "The reduction in electricity tax for all was agreed as a further step towards more competitiveness and location relief for Germany. The current approach of the Federal Finance Minister now poses a threat to this central relief promise," Wüst told Redaktionsnetzwerk Deutschland (RND).
Politics Rising Irritation within coalition CDU demands electricity tax cut as promised "With his plans for the federal budgets 2025 and 2026, he not only disadvantages crafts, trade, and our entire service industry, but also millions of families in Germany," the CDU politician condemned. They desperately need tangible relief from skyrocketing electricity prices. Wüst pointed out that the reduction in electricity tax was one of the most critical economic policy promises during the Bundestag election campaign and was unequivocally decided in the coalition agreement. "Given the public's high expectations for the new federal government, I can only caution Lars Klingbeil against jeopardizing the coalition agreement at this vital moment."
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Even economist Veronika Grimm criticized the federal government for focusing solely on industry relief in electricity tax: "The electricity tax should—as agreed in the coalition agreement—be abolished universally. This would ease the burden on companies and citizens, make electrification more attractive, and also mean a reduction in bureaucracy," Grimm told the "Rheinische Post". She highlighted, in relation to the environment: "During the transformation to climate neutrality, it has long been recommended to refrain from taxing electricity consumption but rather CO2 emissions."
Similarly, the German Social Association (SoVD) has voiced its concern. "It's sad that Union and SPD are breaking their promises from the coalition agreement," said SoVD board chair Michaela Engelmeier to the Funke media group newspapers. "The decision to make energy cheaper only for companies and not for consumers, we consider the absolutely wrong signal." Especially people with low incomes or limited pensions are struggling due to the high consumer prices, said Engelmeier. The association is familiar with the plight of its social advice: Due to the relentless rise in prices for food, rents, and energy, little to nothing is left at the end of the month for many. "Here, a reduction in electricity tax could have alleviated much of the burden," said the SoVD chairperson.
[Source: ntv.de, mau]
- Black-Red
- Coalition Negotiations
- Electricity Price
- Tax Cuts
- Fiscal Policy
- Hendrik Wüst
- Lars Klingbeil
Background:The current state of the Coalition Agreement regarding electricity tax cuts reveals a significant deviation from the initial commitment made by the ruling parties (CDU, CSU, SPD). The Coalition Agreement had pledged to lower the electricity tax for everyone by at least five cents per kilowatt hour as an immediate measure to relieve both businesses and consumers permanently. This was intended to provide relief to all electricity users in Germany[4].
However, the proposed federal budget for 2025/26 has not honored this commitment. Instead of a universal reduction, the proposal only includes a permanent lowering of the electricity tax for manufacturing and agricultural sectors. Consumers and small businesses have been excluded from these tax cuts, effectively breaking the coalition agreement's promise[4].
This breach has drawn criticism, especially from Hendrik Wüst, the Minister President of North Rhine-Westphalia (NRW). Wüst has expressed disapproval towards SPD Finance Minister Lars Klingbeil for failing to deliver on the election promises related to the electricity tax reduction. The criticism revolves around the fact that consumers—who were explicitly included in the coalition agreement's promise—are left without the expected tax relief in the current budget proposal[4].
Finance Minister Lars Klingbeil has defended the administration's approach by emphasizing that energy prices still remain high compared to competitive levels despite dropping from their peak during the 2022 energy crisis. He argues that the existing measures, including the electricity tax cuts for industry, gas storage levy subsidies, and increased support for grid expansion costs, are part of a broader transformation strategy. This strategy aims to support industry's phase-out of coal and transition to renewable energy sources, with natural gas serving as an interim solution. Klingbeil underscores that renewables remain the ultimate goal, and budget planning continues the subsidies agreed under the former Green Party economy minister, Robert Habeck[2].
Ultimately, the electricity tax cut commitment remains unfulfilled for consumers, fanning politically-motivated criticism within the coalition, particularly from NRW's Hendrik Wüst, directed at Finance Minister Klingbeil[2][4].
- In light of the coalition agreement, Hendrik Wüst, the Minister President of North Rhine-Westphalia, has criticized SPD Finance Minister Lars Klingbeil for only implementing half of the promised reduction in electricity tax, leaving consumers and small businesses without the expected relief.
- The German Social Association (SoVD), voicing concern over the situation, has expressed disappointment that the promised reduction in electricity tax will not benefit consumers, as per the coalition agreement, potentially sending the wrong signal to millions of families struggling with skyrocketing electricity prices.
