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Germany’s Coalition Defers Household Electricity Tax Cut, Approves Limited Relief

Interim measures waive the gas storage levy plus cut transmission fees to deliver up to €100 in annual household savings, delaying a universal tax cut until fiscal room exists.

Jan-Lennard Struff jubelt
Leverkusen holt den U21-Europameister Jarell Quansah.
Polizeibeamte gehen zu dem ICE, in dem ein Mann in Niederbayern mehrere Passagiere angegriffen hat.
Lars Klingbeil an einem geöffneten Auto

Overview

  • The federal cabinet restricted the coalition’s promised five-cent per kWh electricity tax cut to industry and agriculture, excluding private households.
  • Households will be exempt from the gas storage levy and benefit from reduced transmission fees under the interim deal.
  • Officials said a universal household tax cut would cost €5.4 billion annually and face funding gaps from 2027, prompting its postponement until budgetary space opens.
  • CDU, SPD and CSU leaders reached the compromise after a five-hour Koalitionsausschuss meeting aimed at reconciling fiscal discipline with campaign promises.
  • Business associations, opposition parties and Union MPs criticized the delay as a breach of the coalition agreement and warned of eroded public trust.