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4d ago

German Coalition Defends Scaled-Back Electricity Relief as Critics Accuse It of Broken Promises

Strict financing rules have led the government to replace the promised universal tax cut with targeted grid fee and gas levy relief.

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Die drei entscheidenden Männer der schwarz-roten Koalition werden bei der Aufstellung des Bundeshaushalts 2027 um tiefgreifende Sparbemühungen nicht umhinkommen
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Overview

  • Coalition leaders confirmed they will not lower the electricity tax for all households and businesses, instead extending cuts only to network charges, abolishing the gas storage levy and preserving relief for producing companies.
  • Handelsverband Deutschland and the Groß- und Außenhandelsverband BGA sent a joint letter to Chancellor Merz and Finance Minister Klingbeil accusing the government of word-breaking and warning of planning uncertainty.
  • CDU state leaders including Daniel Günther and Hendrik Wüst criticized the decision as a misplaced priority, questioning why consumer relief was shelved in favor of accelerating the Mütterrente expansion.
  • SPD parliamentary leader Matthias Miersch and the Federal Ministry of Finance have defended the compromise as consistent with contractual financing reservations and stressed that parliamentary approval is still required.
  • Public interviews and survey data reveal growing resignation among citizens over unmet energy relief promises, raising concerns that trust in the coalition could erode ahead of upcoming budget debates.