Disagreement in the federal cabinet dampens investment
The debate over cutting the electricity tax to the European minimum level is causing mounting uncertainty among businesses and private households. Federal Chancellor Merz had held out the prospect of this measure for all consumers. Shortly afterwards, however, Federal Finance Minister Klingbeil called the plan into question again, citing unresolved offsetting finance.
The Federal Association of Cooperative Medium-Sized Enterprises (BKM) has voiced criticism of this inconsistent stance. Its president Günter Althaus, who is also chief executive of Reformhaus eG, described the hesitant approach as a fatal signal. He stated that it is hard for medium-sized enterprises and private individuals to understand when relief is first announced politically and then immediately qualified.
Althaus pointed out that lowering the tax burden was a core objective of the coalition agreement. Contradictory statements from ministries were creating planning uncertainty that noticeably weighed on upcoming investment and progress in electrification. Market participants depend on a reliable framework, he added.
Call for a concrete financing plan
Against the backdrop of the autumn forecast by the Working Group on Tax Estimates, the BKM considers the budgetary reservations that were voiced to be no longer tenable. The estimate points to additional revenue for public budgets. The federal government must now present a united front and put forward a viable implementation roadmap without delay.
- —Assessment of alternative models, including advance financing through future revenue from European emissions trading
- —Direct and unbureaucratic relief for private households as well as businesses
- —Consistent adherence to the agreements set out in the coalition treaty
The measure has been on the table for some time and would directly strengthen the economy. In the view of Althaus, political declarations must now be followed by practical implementation in order to safeguard the credibility of the government and establish clarity for future investment decisions.
