Electricity tax scandal: Merz endangers the economy and household confidence!

Electricity tax scandal: Merz endangers the economy and household confidence!

In the current discussion about the electricity tax in Germany, there are considerable concerns about the economic impact. In view of the federal government's decision not to grant the announced electricity tax reduction to private households, experts are warning of negative consequences for the economy. According to that Mercury Abandoning this relief measure could deprive households of more than five billion euros in potential savings, which will have a direct impact on the economy.

The Ifo study estimates that this decision could reduce gross domestic product by a total of 0.1 percentage points this year and next. While economic growth is forecast at 0.3 percent for 2025 and 1.5 percent for 2026, negative sentiment in households could further dampen the upswing. After all, Germany has to contend with one of the five highest electricity prices in the world, with average costs of 38 cents per kWh.

Political reactions

Chancellor Friedrich Merz (CDU) defends the decision to only allow companies and industry to benefit from the reduction in electricity tax. He argues that this means savings of 150 euros per family per year - a total of ten billion euros. Merz emphasizes the need for investments and justifies the additional debt required for this.

However, the coalition committee has not yet reached an agreement on a reduction in electricity tax for private households. Instead, reductions in network fees and the abolition of the gas storage levy are planned for 2026. The federal government is being criticized because many citizens and entrepreneurs could be disappointed in their expectations by the lack of relief.

Impact on the economy

According to the Ifo study Although the current calculations are pessimistic, it is said that the negative impact on the economy could occur to a limited extent. An improvement in the mood among consumers and entrepreneurs was noted, which may be due to hopes of a timely implementation of the measures announced in the coalition agreement.

Nevertheless, disappointment over unfulfilled expectations could increase uncertainty. As a result, households and companies could postpone their consumption and investment spending, which would further dampen the already fragile economic recovery. Economists see this as a serious threat to Germany's economic stability.