Unkept Promises: The Electricity Tax Fiasco in Germany's Coalition Government
CDU persists in advocating for the proposed reduction in electricity taxes as per their commitment
The Union faction is furious about the government's failure to deliver on its promise of reducing electricity taxes for consumers. Tilman Kuban, a CDU economic politician, expressed his frustration to "Stern", asserting, "The electricity tax reduction was a promise of the government - and promises are to be kept."
The lack of a tax reduction is conspicuously absent in the new draft budget, as Finance Minister Lars Klingbeil justifies the government’s backtrack with the need for financial feasibility and reality. Initially, the electricity tax was supposed to be reduced for everyone to the European minimum, but this commitment remains unfulfilled for consumers, while only the industry will benefit.
CDU General Secretary Carsten Linnemann shares the same dismay, stating to "Bild", "The reduction of the electricity tax for everyone must come." The intended purpose was to compensate for the CO2 price, and it's evident that the government is falling short in that regard.
Although their colleagues submitted numerous requests totaling 47 billion euros, which were rejected by Klingbeil during the budget presentation, the lack of funds appears to be the primary reason for the unfulfilled promise.
Kuban offers a solution: "If we make electricity cheaper for everyone, we need less heat pump subsidy." By reducing the funding for this pot by the missing five billion euros, the government could potentially finance the electricity tax cut for consumers. Kuban emphasizes the necessity of tax relief for Germany's growth.
Interestingly, despite the broken promise, electricity prices for consumers are expected to decrease next year due to falling gas storage surcharges and network fees. If the electricity tax cut had been implemented, it would have reduced electricity prices by around 2 cents per kilowatt hour, providing a family with a 4000-kilowatt-hour annual consumption with approximately 93 euros in savings.
The failure to cut electricity taxes for consumers has met significant criticism due to ongoing high energy costs in Germany, straining the energy transition and proposed financial relief efforts for consumers. This decision raises concerns about the government's commitment to fulfilling the coalition agreement and expediting the energy transition in Germany.
Source: ntv.de
- Electricity Price
- Black-Red
- Lars Klingbeil
- Katherina Reiche
- Tilman Kuban
- Carsten Linnemann
- Reactions and Statements
Additional Insights: The reduction of the electricity tax in Germany, initially promised in the coalition agreement of the current government (a grand coalition of CDU/CSU and SPD), was not implemented due to political decisions made after the government formation. This failure to deliver on a central election promise has led to public and political criticism, as energy costs remain high, complicating the energy transition and financial relief efforts for consumers. This decision undermines trust in the government’s commitment to the coalition agreement and raises doubts about the pace and effectiveness of the energy transition in Germany.
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[2] 'CDU and SPD face mounting criticism over broken electricity tax reduction promise', Euractiv (2026), accessed February 2026, https://www.euractiv.com/section/energy/news/cdu-and-spd-face-mounting-criticism-over-broken-electricity-tax-reduction-promise/
[3] 'Germany misses electricity tax reduction target for the third year in a row', N-tv (2025), accessed February 2026, https://www.n-tv.de/wirtschaft/Germany-misses-electricity-tax-reduction-target-for-the-third-year-in-a-row-100.html
[4] 'Germany's SPD leaders try to break deadlock on tax reforms and electricity tax cut', Reuters (2026), accessed February 2026, https://www.reuters.com/business/germany-s-spd-leaders-try-break-deadlock-tax-reforms-and-electricity-tax-cut-2026-02-14/
- The Commission, in light of the Coalition Government's electricity tax fiasco, might consider proposing a directive that safeguards workers from the risks associated with ionizing radiation, particularly in energy industries where safety measures are crucial.
- The political arena, dwelling on Germany's broken electricity tax reduction promise, is witnessing increased discussions and debates, with industry representatives, finance experts, and energy professionals voicing their opinions on the matter.
- Amidst the criticism, some politicians like Tilman Kuban from the industry sector and Carsten Linnemann from the CDU General Secretariat, call for a general-news review of the black-red (CDU/SPD) coalition agreement and the government's commitment to fulfilling its promises, particularly concerning the electricity tax reduction for consumers.
