Politics · Germany · 6 hrs ago
Klingbeil questions funding for Merz’s planned electricity tax cut
German Chancellor Friedrich Merz wants to lower the electricity tax for everyone to the minimum level allowed in the European Union.
The plan is meant to ease household costs and help restore trust after the coalition delivered tax relief only to some business sectors.
Merz raised the proposal after a 24-hour meeting of the CDU leadership, which focused on the party’s weak position and how it could respond.
Finance Minister Lars Klingbeil said he has no objection to the idea, but the government must be able to pay for it.
He said he could not confirm that economic growth would provide enough lasting revenue to fund the cut.
The government has raised its growth forecast for 2026 from 0.5% to 1.3%.
Merz estimates that each additional percentage point of growth would bring about €10 billion more in tax revenue, including €5 billion for the federal government, but no decision on funding was stated.
Finance Minister Lars Klingbeil said he could not confirm that stronger growth would provide lasting funding for a planned electricity tax cut.
Chancellor Friedrich Merz wants to lower the tax for everyone to the European minimum level.
Klingbeil said he had no objection to the idea but questioned whether enough money would be available.
The coalition had previously promised the cut, but so far it has been introduced only for some economic sectors.
Merz said the measure would ease costs and help close a credibility gap.
- Who
- Chancellor Friedrich Merz is proposing the cut; Finance Minister Lars Klingbeil questioned whether it can be funded.
- What
- Merz wants to lower the electricity tax for everyone to the European minimum level. Klingbeil said he could not confirm that stronger growth would fund it on a lasting basis.
- When
- Klingbeil made his remarks on Monday, October 12, 2026.
- Where
- Berlin.
- Why
- Merz says the cut would ease costs and help restore trust. Klingbeil said it must be affordable.
Friedrich Merz
Lars Klingbeil
Funding
Friedrich Merz
Merz expects additional budget room from improved economic growth to finance the tax cut.
Lars Klingbeil
Klingbeil said he could not confirm that growth would provide lasting funding for the cut.
Policy
Friedrich Merz
Merz wants the electricity tax lowered for everyone to the European minimum.
Lars Klingbeil
Klingbeil said he had no objection to the idea, but said it must be affordable.
Merz named an electricity tax cut as one of the projects intended to help the party recover from its slump.
Klingbeil said he could not confirm that stronger growth would provide lasting funding for the tax cut.
- Proposed tax level
- European minimum
- Growth forecast for 2026
- Raised from 0.5% to 1.3%
- Merz’s estimate
- One percentage point of additional growth would bring about €10 billion in extra tax revenue, including €5 billion for the federal government
- Current reach of the cut
- Implemented only for certain economic sectors
What people are saying
We are pleased that growth is back. But I cannot confirm today the assumption that this would allow a lasting electricity tax cut to be financed.
We want not only to provide relief, but also to close the credibility gap that this decision last year created for all of us.
Sources
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