Politics · Germany · 6 hrs ago
German states press federal government for electricity tax cut and fuel price cap
Germany’s state leaders called for faster energy-cost relief at a meeting in Berlin.
They urged the federal government to cut electricity tax for households and all businesses.
The cut was promised in the coalition agreement, but so far it applies only to industry, agriculture and forestry.
State leaders say energy costs remain high, while some warn that the government must explain how it would pay for a wider cut.
Finance Minister Lars Klingbeil has questioned whether it is affordable, and some state leaders share those concerns.
Leaders also want the federal government to quickly propose a fuel price cap, which they say should help prevent motorists from paying more to boost companies’ profits.
The states want action soon, including clarity on the fuel price cap and, according to some leaders, relief from high heating-oil costs.
Germany’s state premiers are urging the federal government to cut electricity tax for all consumers as soon as possible and to propose a fuel price cap promptly.
The federal government has not yet delivered its coalition-agreement promise to lower electricity tax for all to the European minimum.
Finance Minister Lars Klingbeil says the latest tax revenue increase leaves little room for extra spending and has called for proposals to include funding plans.
State premiers including Gordon Schnieder and Hendrik Wüst argue that the federal government has room to act and that energy costs are placing a heavy burden on people.
The states also want the government to clarify how the announced fuel price cap will work after January 1, 2027.
- Who
- Germany’s state premiers are pressing the federal government, including Chancellor Friedrich Merz and Finance Minister Lars Klingbeil.
- What
- The states want a rapid electricity tax cut for all and a timely proposal for the announced fuel price cap.
- When
- The states made the requests at their conference on October 22, 2026.
- Where
- Berlin.
- Why
- They say energy prices remain too high and the cost of energy and fuel makes daily life less affordable.
State premiers urging relief
Finance Minister Lars Klingbeil
Electricity tax cut
State premiers urging relief
The state premiers say the federal government has room to lower electricity tax for everyone and should act quickly.
Finance Minister Lars Klingbeil
Klingbeil says the tax revenue increase leaves little room for extra spending and says proposals should include a way to fund them.
The federal government announced it would speak with the mineral oil industry about a fuel price cap, with a stated goal of introducing it by January 1.
State premiers meeting in Berlin called for a rapid electricity tax cut for all and a timely proposal on the fuel price cap.
Klingbeil said the tax revenue increase offered little room for additional spending and called for funding proposals alongside spending ideas.
- Tax revenue forecast
- Federal government expected to receive €4.1 billion more in 2027 than previously expected
- Electricity tax pledge
- Coalition agreement promises a cut for all to the European minimum
- Current electricity tax reductions
- Apply to industry, manufacturing, and agriculture and forestry, but not households or other businesses
- Budget gap
- €22 billion shortfall projected for 2028
- Fuel price cap target
- Government aimed to introduce it by January 1, 2027
7 sources
Nächster Koalitions-Zoff? - Klingbeil-Absage: Kein Geld für billigeren Strom!
Ministerpräsidentenkonferenz: Länder fordern Tempo bei Stromsteuer und Spritpreisdeckel
"Leben muss bezahlbar sein": Jetzt wollen auch die Ministerpräsidenten die Stromsteuer für alle senken
Länder fordern Tempo bei Stromsteuer und Spritpreisdeckel
What people are saying
We believe the federal government has this room.
For 2027, we are not gaining any new room for manoeuvre overall, but we also do not have to close any new gaps.
We need the electricity tax cut for everyone now – and as quickly as possible.
We need the signal that people can rely on such messages and decisions.