Divisions in the Coalition: CDU Pushes for Delivered Electricity Tax Cut
CDU Presses For Delivery of Promised Reduction in Electricity Taxes
There's an uproar within the Union faction over the unfulfilled promise to lower the electricity tax for consumers. According to CDU economic politician Tilman Kuban, "The reduction in the electricity tax was a promise by the government - and promises should be kept." He emphasizes the need for parliament to intervene and rectify the Finance Ministry's error in omitting the promised cut in the new draft budget.
Initially, the government pledged to reduce the electricity tax to the EU minimum for everyone. However, Finance Minister Lars Klingbeil's new draft budget only includes tax cuts for the industry, leaving consumers out. At the Industry Day, Federal Minister of Economics Katherina Reiche defended the U-turn, stating that the coalition agreement met financial feasibility and reality.
While CDU General Secretary Carsten Linnemann also disagrees with the rejection of the electricity tax cut, the government appears to be lacking the necessary funds to make it happen. The situation has left some disgruntled Union MPs protesting against the move, aiming to save the money for the energy transition.
The absence of a reduced electricity tax may lead to increased electricity prices for consumers. However, gas storage surcharges and network charges are expected to decrease next year, potentially easing the burden. A family with an annual consumption of 4000 kilowatt hours would have been relieved by around 93 euros per year with the reduction in the electricity tax, according to calculations by the comparison portal Verivox.
Amidst this unrest, CDU economic politician Kuban suggests a solution: "If we make electricity cheaper for everyone, we need less heat pump promotion." By reducing the promotion pot for heat pumps by the missing five billion, the government could fund the tax cut for consumers. However, it remains to be seen if this idea will gain traction in the coalition.
Keywords:
- Electricity price
- Black-Red
- Lars Klingbeil
- Katherina Reiche
- Tilman Kuban
- Carsten Linnemann
- Reactions and statements
Insights:
- The ongoing dispute within Germany's governing coalition revolves around differing views on the implementation and financing of electricity tax cuts within a broader fiscal and economic context.
- While tax relief measures, including corporate tax cuts and incentives for electric vehicles, are part of the coalition's agenda, specific approaches to electricity tax cuts remain unsettled.
- Balancing the need for consumer relief with fiscal responsibility and budget constraints is a key challenge for the government as it attempts to create effective subsidies or tax cuts without undermining other economic priorities.
- Ongoing uncertainty over the specifics of the electricity tax cut may prolong the high electricity prices for consumers, potentially impacting household budgets and consumption recovery during an economic stagnation year.
- As the dispute over the electricity tax cut continues within Germany's coalition, CDU economic politician Tilman Kuban proposes funding the tax relief by reducing the promotion pot for heat pumps by the missing five billion, with the aim of making electricity cheaper for everyone.
- The Commission, in the midst of division within the political sphere, has been asked to submit a proposal for a directive on the protection of workers from the risks related to exposure to ionizing radiation, including those in the finance, business, and political sectors, as well as the general news industry, who may be affected by such risks.
