Germany's finance ministry opposes Economy Minister Katherina Reiche's proposal to cut the electricity tax for businesses and households. The dispute in the black-red coalition over relief from high energy prices is escalating after Reiche and Finance Minister Lars Klingbeil clashed on Friday. Chancellor Friedrich Merz has expressed annoyance at Reiche's push.
Berlin. The federal government is grappling with measures against high fuel and energy prices, triggered by the Iran war and rising gas prices that are driving up electricity costs. Economy Minister Katherina Reiche (CDU) calls for cutting the electricity tax but faces scepticism from Finance Minister Lars Klingbeil's (SPD) ministry.
A draft memo from the finance ministry, obtained exclusively by Handelsblatt, criticises Reiche's proposal. The documents were requested by the fuel price task force of the CDU/CSU and SPD parliamentary groups and still need coordination. Reiche opposes Klingbeil's ideas for a fuel price cap and an excess profits tax.
On Friday, the ministers clashed: Klingbeil hosted an economic summit in his ministry, inviting Reiche only as a guest – not as co-host. Reiche could not attend due to her schedule. Chancellor Friedrich Merz is annoyed by Reiche's public attacks.
