Politics · Germany · 19 hrs ago
Merz backs lower electricity tax and higher tobacco tax
German Chancellor and CDU leader Friedrich Merz has outlined plans to respond to his party’s political crisis after a two-day meeting with its senior leaders in Berlin.
The CDU wants to lower electricity tax for everyone, reversing a change that so far has benefited only some business sectors.
Merz said stronger growth could create room in the budget for the cut, which the government had originally promised.
The party also proposes raising tobacco tax and introducing a sugar tax, though these measures still need decisions by the coalition government.
The CDU’s plan also calls for simpler building rules, easier access to specialist doctors and keeping pension credits for family members who provide care.
The meeting followed poor state election results and a fall in support for the CDU in national polls.
The party has published a six-page plan, but the tax proposals have not yet been enacted.
Friedrich Merz said the CDU would pursue a lower electricity tax for everyone, aiming to reduce household costs and address a credibility gap.
The party’s leadership agreed on a six-page statement after a meeting in Berlin focused on the CDU’s crisis.
Merz also backed higher tobacco taxes and a new sugar tax, despite CDU state premiers’ call for no tax rises or new taxes.
The proposed electricity tax cut would bring an estimated family of four about €7.50 in monthly savings, according to experts cited by Bild.
The CDU said it would consider reducing or ending development aid to countries that refuse to take back refugees.
- Who
- Chancellor and CDU leader Friedrich Merz, and the CDU leadership.
- What
- Merz backed a lower electricity tax for all and higher tobacco taxes; the CDU also proposed a new sugar tax.
- When
- The statements followed a CDU leadership meeting on 12 October 2026.
- Where
- Berlin.
- Why
- The CDU was seeking a response to its crisis after losses in state elections and a decline in public support.
CDU state premiers
Merz and CDU leadership
Tax policy
CDU state premiers
They called for no tax increases and no new taxes.
Merz and CDU leadership
Merz backed raising the tobacco tax and introducing a sugar tax.
The CDU suffered losses in state elections, including failing to enter the Mecklenburg-Western Pomerania state parliament for the first time in its history.
Merz and the CDU leadership discussed the party’s crisis at a meeting in Berlin and announced a six-page statement.
Merz backed pursuing an electricity tax cut for all, while also supporting higher tobacco taxes and a new sugar tax.
- Electricity tax
- Merz said the cut should apply to everyone and bring the tax down to the European minimum.
- Family savings estimate
- About €7.50 per month for a family of four, according to experts cited by Bild.
- Growth forecast
- The government raised its 2026 growth expectation from 0.5% to 1.3%.
- Meeting statement
- Six pages, titled “What needs to happen now.
- Development aid
- The CDU proposed no or substantially reduced aid to countries that do not take back refugees.
What people are saying
We must work our way out of a slump, including a crisis of confidence.
We want not only to enable relief with this, but also to close the credibility gap that resulted from this decision last year for all of us.
You cannot simply reinvent a party in one weekend.
The recent election results were a clear warning signal for the Union.
Sources
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