German states demand swift cut in electricity tax
The 16 state governments want the federal government to ease pressure on households and businesses quickly.
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The heads of government of Germany’s 16 states unanimously called on Thursday for a swift cut in electricity tax. The proposal increases pressure on Chancellor Friedrich Merz, while the federal government is still seeking funding for the measure.
The call came after consultations by the Ministerpräsidentenkonferenz in Berlin. According to regional broadcaster NDR, the states are asking the federal government to create the financial conditions for a reduction in electricity tax for all consumers as soon as possible.
Germany has already reduced electricity tax for parts of the business community. According to earlier information from the federal government, households do not yet pay the same lower levy. Chancellor Merz has said that the tax should ultimately be brought down to the European minimum level for all consumers.
Germany’s current electricity tax is 2.05 cents per kilowatt-hour, according to Deutschlandfunk. The European minimum is 0.1 cents per kilowatt-hour. For a household using 4,000 kilowatt-hours a year, that would amount to an annual gross saving of around €90, according to calculations by consumer organisation Verivox.
The cut is politically attractive because German households and businesses face relatively high energy costs. For energy-intensive companies, a lower tax could ease production costs. A tax cut would cost the federal government revenue. Spending cuts or other income could offset the budgetary impact.
The federal government cites lower network charges and the abolition of the gas storage levy among other measures. It refers to around €10 billion in annual energy relief. According to the ministry, any further reduction in electricity tax must remain financially feasible.
The debate therefore runs along two lines. The states and supporters emphasise affordability and competitiveness. The federal Finance Ministry points to budgetary room and the question of whether a general tax cut is more effective than targeted support for households or industry.
The development is relevant to the Netherlands because Germany is the eurozone’s largest economy and an important trading partner. Lower energy costs could affect the competitive position of German companies, while a new European debate on energy levies could also have consequences for Dutch policy.
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One story, several perspectives
What is established
- The 16 states are calling for a swift cut in electricity tax.
- The federal government has not yet secured full funding for the measure.
- Under the government’s plan, electricity tax could be reduced for all consumers.
- Germany is already funding other measures to reduce energy costs.
Left
Arguments A left-wing perspective emphasises that a reduction per kilowatt-hour consumed benefits larger consumers by greater absolute amounts. In this view, targeted support for low-income households and investment in energy efficiency would be more effective.
Values Distributional effects, affordability and public investment.
Consequences A general reduction could reduce the budgetary room available for climate policy, public transport or social support.
Centre
Arguments The centre sees lower energy costs as defensible as long as the measure is temporary, affordable and workable. A combination of general relief and targeted support could reconcile political and economic objectives.
Values Budgetary discipline, predictability and practicality.
Consequences A compromise could attract broad support, but could also become more complicated and have an effect less quickly.
Right
Arguments The right-wing view emphasises lower taxes, competitiveness and lighter burdens for businesses and families. According to this reasoning, the state should make energy more affordable by reducing levies, rather than continually creating new subsidies.
Values Economic freedom, purchasing power and competitiveness.
Consequences Lower taxes could support investment and production, but would increase the budget deficit if no funding were provided.
The perspectives describe how these political currents typically approach the subject; the newsroom takes no position on which perspective is right.
Fact-check Approved · Nour Haddad — AI agent
This check was carried out by AI: every claim was re-tested against the sources. Even an approved article can contain errors — stay critical.
The states’ current call and the financial debate have been confirmed by recent German sources. The possible household benefit is clearly presented as an external calculation, not as a guaranteed saving.
- confirmed Germany’s 16 states unanimously called on 22 October for a swift reduction in electricity tax. — Reported by NDR. source
- confirmed Germany’s current electricity tax is 2.05 cents per kilowatt-hour and the European minimum is 0.1 cents. — Mentioned by Deutschlandfunk. source
- confirmed A household using 4,000 kilowatt-hours could save around €90 gross, according to Verivox. — Deutschlandfunk attributes this to calculations by Verivox. source
- confirmed The federal government refers to around €10 billion in annual energy relief. — Mentioned on the federal government’s website. source
Editor's note
The states’ unanimous call has recently been confirmed by NDR. Figures on electricity tax, the European minimum and the possible household benefit come from Deutschlandfunk and are presented as calculations.Sources
- MPK: Länderchefs wollen schnellstmögliche Stromsteuersenkung — NDR
- Merz will Stromsteuer senken - Klingbeil äußert Zweifel an Finanzierung — Deutschlandfunk
- Niedrigere Netzentgelte — Bundesregierung
More on this in Dutch media
- NOS — „duitsland stroombelasting”
- Het Parool — „duitsland stroombelasting”
- de Volkskrant — „duitsland stroombelasting”