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Electricity tax will not be reduced: The SPD and the Union break their word

Electricity tax will not be reduced: The SPD and the Union break their word

Money is the key to friendship. So the saying goes, and the CDU/CSU coalition government is experiencing it these days. Since Finance Minister Lars Klingbeil (SPD) presented his draft budget for the current year, the already fragile friendship between the Christian Democrats and the Social Democrats has come to an end. Many in the CDU and CSU have not been pleased at all with Klingbeil's answers regarding money. The canceled reduction in the electricity tax, in particular, is causing massive anger.

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And rightly so, because one of the coalition's major promises was to finally make energy more affordable. When they came to power, the conservative and red coalitions promised that businesses and consumers would be permanently relieved by "at least five cents per kilowatt hour." The first two cents would benefit electricity customers as an "immediate measure" – by reducing the electricity tax to the European minimum rate. The coalition agreement in which this is written is less than eight weeks old, and the emergency program in which the CDU/CSU and SPD renewed their promise is less than five weeks old. And now, without a fuss, the relief has been scrapped.

This is an outrageous move, but it fits the image of a coalition that has already made numerous bold announcements, only to retract them shortly thereafter. Consider Friedrich Merz's election promise to comply with the debt brake rules, or the "de facto entry ban" for asylum seekers that he attempted to enforce on the first day of his chancellorship by issuing directives.

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The coalition is also backing away from its promises regarding the planned expansion of the mother's pension. The reform is not scheduled to take effect until 2028, although the CSU consistently emphasized during the election campaign that the additional half pension point for children born before 1992 was not just a question of fairness, but of the lifetime achievements of an entire generation of mothers. The fact that the ten million affected now have to wait another 2.5 years before this achievement is financially recognized is not a good sign for the CSU. However, since the pension insurance system is simultaneously asserting that it will not be able to manage a change before 2028, and a new state parliament is scheduled to be elected in Bavaria that same year, the Christian Social Union is taking it in stride. Sometimes things just work out.

But when it comes to electricity prices, nothing is coming together, and the dispute within the coalition is in full swing. The CDU, in particular, is trying to blame treasurer Klingbeil. It's a strategy that promises little success, both in terms of content and strategy. Of course, Klingbeil didn't decide to end the tax cuts on his own, but rather coordinated with Economics Minister Katherina Reiche and Chancellor Friedrich Merz (both CDU). The accusation that Klingbeil is violating the coalition agreement is therefore pointless.

However, there is certainly a breach of promise – and that is to the voters. In the rush to raise billions in special debt for infrastructure and defense, the CDU/CSU and SPD have overpromised. There is enough money for investments in railways, roads, and the Bundeswehr, but not for consumer spending.

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The coalition partners collectively raised false expectations; now they should be jointly explaining why they cannot fulfill them. Instead, representatives of the governing parties are falling back into old traffic-light patterns—and attacking each other. Public disputes, however, have never helped any government. Anyone who doubts this should simply ask Olaf Scholz.

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