Soaring Power Bills: Black-Red Gov's Promised Relief Under Scrutiny Over "Unfulfilled Promise"
Red-black coalition delivers stimulus package - contention over cost division persists
By Volker Petersen
Got some funky power bills? Blame it on the Black-Red administration, who are under fire for allegedly ditching their electoral promise of relief.
Despite signs of progress, like touchdowns on key projects and investments, plus tax cuts to jumpstart the economy, the federal government still faces criticism. And this time, it's coming from all corners.
Economy and Energy PricesThe Black-Red Team, as cheered on by the Union and the SPD, is in the hot seat due to the electricity crisis that's been going on for two years. Experts and industry insiders welcome the push for special depreciations on assets and electric vehicles, but no one's got the bottle to call these measures the ultimate solution.
Black-Red's terrorising private citizens with nonetheless higher electricity bills, while blithely giving company bigwigs a break on gas. "What's a regular household expected to make of cheaper gas and dearer electricity?" industry experts lament.
In the face of criticism, Black-Red continues to power forward with ambitious projects, settling the funding chaos with states swiftly. The budget's in place, more goodies like the commuter allowance and active pension are in the pipeline. Chancellor Friedrich Merz is all guns blazing, determined to flip the country's mood around and bring on new growth.
Politics and Breaking PromisesBut opposition is everywhere, from unexpected quarters like NRW Minister President Hendrik Wüst. He's none too pleased about the electricity tax remaining the same for private households, contrary to the initial deal between the Union and the SPD. With the Reds waggling a potential break of the contract at the SPD, Wüst warns the latter not to make bad karma over petty politics.
Industry notables like DIHK President Peter Adrian and trade associations like German Industry and Trade aren't pleased about the exclusive focus on industry and conglomerates. "Another slap in the face for millions of companies, thanks to the Finance Minister's callous refusal to reduce electricity tax for everyone," Adrian ranted.
Similarly, the Association of German Retailers and the Federal Association of Consumer Organizations publicly lashed out, calling it a breach of trust towards common citizens. "Don't jilt private residents," they scream. German Social Union head Michaela Engelmeier and Federal Association of Taxpayers president Reiner Holznagel join in on the chorus of discontent, with Holznagel declaring it a "brazen lie."
"Elephant in the Room"
Curiously, the electricity tax for private consumers hovers around 2.05 cents per kWh, while the European minimum is a measly 0.1 cents per kWh. A reduction would provide immediate relief to private households, enabling heat pumps and electric cars to become more attractive options.
Finance Minister Klingbeil contends that all coalition commitments are subject to a financing reservation. Nevertheless, he argues that the federal budget is feeling the heat due to global economic pressures. The relief measures aimed at making energy prices competitive are scheduled to kick in from January.
However, Klingbeil's spin isn't doing much to quell the uproar. The German SME Association is still seething, pushing for more guts in slashing company taxes, slated to drop only in 2028 - a watered-down move, according to the association.
The Left Party is raging about the lack of support for individual buyers of electric vehicles in the parliamentary brawl. Only company employees set to re-sell electric vehicles on the used car market in the future will benefit from the tax cuts - a damp squib for everyday users who can't afford the outright cash for new electric cars.
The government's yet to share the much-hyped leasing models for the unprivileged, a notion fiercely welcomed by the masses but sorely missing from the current plan.
The coal's on Financial Minister Klingbeil to redeem himself and prove he hasn't broken his promise to the German public, or to come clean if they're to believe his Big Lie.
- Electricity Price
- CDU
- SPD
- Black-Red
- Lars Klingbeil
- Electric Cars
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- The CDU and SPD, under the Black-Red administration, have been criticized for not fulfilling their promise to lower electricity prices despite the ongoing crisis that has lasted for two years.
- Finance Minister Lars Klingbeil, from the SPD party, continues to face accusations of broken promises regarding electricity prices, as he has yet to announce substantial measures to reduce the tax burden on private households, favoring instead conglomerates and business entities.
