Merz pledges to cut electricity tax for all households using budget leeway
Federal Chancellor Friedrich Merz announced plans to lower the electricity tax to the EU minimum for every household, citing available fiscal space.
In Berlin, Federal Chancellor Friedrich Merz declared that the electricity tax will be cut to the European minimum for all households, drawing on fiscal room that could arise from stronger economic growth. The proposal fulfills a pledge made in the CDU’s "Sofortprogramm" and the coalition contract, which had remained unfulfilled. Merz highlighted an upward revision of growth forecasts as the basis for the available leeway.
He expressed gratitude to departing labour minister Bärbel Bas and indicated he would request President Frank-Walter Steinmeier to install Alexander Schweitzer, the SPD’s nominee, in the ministry. The chancellor also warned against forming a Berlin coalition with the Left party, urging the SPD and Greens to cease negotiations. Finally, Merz distanced Germany from a US proposal to import Russian diesel, reaffirming support for sanctions against Russia.
Why it matters
The tax cut could lower energy costs for German households and signals the coalition’s fiscal priorities.
How this story developed
- Oct 12 Bärbel Bas steps down as Germany's labor minister and SPD co-chair
- Oct 12 SPD will elect new leadership at its year‑end congress.
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