By Andrea Thomas
BERLIN (Dow Jones) — Federal Minister of Economics Robert Habeck (Greens) has rejected proposals to reduce the electricity tax due to a lack of financing concept. Habeck estimates that such a step would cost up to 8 billion euros and would result in a budget gap. Supporters of this proposal, which include Federal Finance Minister Christian Lindner (FDP) and the Union, have failed to submit a financing proposal.
“Of course, I would be happy if companies and businesses and citizens had to pay less. But there would immediately be a deficit of 7 to 8 billion in the budget, which we cannot close elsewhere at the moment,” said Habeck during question time in the Bundestag on a relevant question. “If you want to comply with the debt brake, you honestly cannot demand that the electricity tax be lowered. Otherwise you would have to make a counter-proposal costing 7 to 8 billion, which I haven’t heard either.”
Instead, Habeck again campaigned for the introduction of an industrial electricity price for energy-intensive industrial companies. According to a proposal from his house, this should be financed with loans from the climate and transformation fund for a limited period of time, in order to build a bridge for companies to a time when sufficient, cheaper electricity from renewable sources is available.
However, the Greens politician conceded that there was no agreement within the coalition with the SPD and the FDP. Linder sees no financial leeway for such an industrial electricity price. On the other hand, he favors a reduction in the electricity tax for everyone.
With a view to the currently difficult economic situation in Germany and the technical recession in the winter months, Habeck pointed out that dependence on Russian gas in particular had weakened Germany economically. However, the economy will grow significantly again in 2024.
“Growth is not satisfactory. Conversely, we managed to slow down the level of inflation in autumn. We expect – and all institutes expect – that after this year we will see significant growth figures again next year,” says Habeck.
The federal government managed to get the crisis under control last year. But she has not yet managed to remedy the structural failures of the past and bring Germany to a higher level of growth.
However, he referred to a number of large investments that companies wanted to make in Germany. With Germany’s participation, it was also possible for the European Union to make significant progress in the negotiations on seven trade agreements with other countries. Habeck expects growth impulses from this.
With a view to the construction of the controversial liquid gas terminals and especially the planned terminal on Rügen, Habeck made it clear that local reservations about the interest in security of supply throughout Germany should take second place. The task of the federal government is to ensure the energy supply throughout Germany, according to the minister.
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(END) Dow Jones Newswires
June 21, 2023 09:29 ET (13:29 GMT)