The German government has postponed electricity tax cuts for households and small businesses, leaving bills high amid budget constraints. The conservative Union parties (CDU/CSU) initially promised to reduce electricity costs but decided to only provide tax breaks for the manufacturing, agriculture, and forestry sectors. Extending cuts to households would have cost €5.4 billion by 2026, and the coalition has failed to secure financing. Germany faces high electricity taxes, which has become a focal point for political criticism, particularly from the far-right Alternative for Germany party.
The German government has announced it was postponing electricity tax cuts for households and small businesses citing budget constraints, meaning electricity bills will remain high for the foreseeable future.
Cutting electricity taxes for businesses was a top item among the conservatives' plans for boosting the German economy.
Doing so was expected to cost €5.4 billion in 2026. As of Wednesday, the coalition partners have failed to find financing for the household tax cuts.
Germany has some of the highest electricity taxes among European countries - a fact that has been exaggerated and weaponised by members of the far-right Alternative for Germany.
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