Medium-sized businesses in distress: electricity tax cuts go unnoticed!

Medium-sized businesses in distress: electricity tax cuts go unnoticed!

In the current political discourse, the federal government's electricity tax reform is hotly debated. While medium-sized businesses are given an important role in the coalition agreement, the actual effects for many small and medium-sized companies are insufficient. “We support medium-sized businesses and trades,” it says, but reality tells a different story. Company representatives report hardly noticeable improvements and the identity of medium-sized businesses is in danger of being lost in the shadow of an industrially focused economic policy. Many medium-sized companies benefit neither from the reduction in electricity tax nor from the reduced industrial electricity price, which leads to massive uncertainty. Rising social security contributions are an additional burden, while the situation remains unchanged after the last coalition committee RP Online firmly.

The government is not planning a general reduction in electricity tax, but is instead targeting targeted subsidies at selected sectors, particularly industry, agriculture and forestry. From January 1, 2026, such a tax reduction is only planned for these specific areas, which understandably causes resistance and criticism within the coalition parties. NRW Prime Minister Hendrik Wüst (CDU) warns of a possible breach of the coalition agreement and emphasizes the citizens' high expectations of the government. Economics Minister Katherina Reiche (CDU) and a spokesman for Chancellor Friedrich Merz (CDU) point to existing budget constraints and the need to create other relief. These include, among other things, the abolition of the gas storage levy and the reduction of network fees ZDF Today.

Criticism and disappointment in the economy

The reactions from business are consistently negative. Industry association president Alexander von Preen warns of a loss of trust and its negative impact on companies. The Central Association of German Crafts also states that this decision is disadvantageous for medium-sized businesses. DIHK President Peter Adrian speaks of numerous disappointed feedback from companies that had hoped for a reduction in electricity tax. Given the fact that households in Germany already pay the highest electricity prices in Europe, the criticism from consumer advice centers is particularly important. They warn of a double burden on consumers.

The discussion about the electricity tax cut reveals deeper problems within the government coalition. Union politicians are calling for comprehensive relief and emphasizing Parliament's responsibility in this matter. While some, such as CDU economic politician Tilman Kuban, see the decision as a mistake by the Finance Ministry, SPD economic expert Sebastian Roloff rejects the accusation of breaking his word and emphasizes shared responsibility in the government. He suggests reviewing the existing plans through the parliamentary process in order to improve the situation for medium-sized businesses.

In conclusion, it should be noted that the electricity tax reform and the associated measures have not yet been sufficient to meet the expectations of medium-sized businesses and the general population. The challenges facing small and medium-sized enterprises are significant and require urgent political solutions, which should also be viewed in the light of an EU report that highlights the potential for savings of up to 300 million euros annually if Germany agrees to the use of electricity price zones.