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Kretschmann calls for a rapid reduction in electricity tax for companies!
Winfried Kretschmann is calling for a reduction in electricity tax for companies on July 4, 2025 in order to ensure competitiveness and relief.
Kretschmann calls for a rapid reduction in electricity tax for companies!
The Prime Minister of Baden-Württemberg, Winfried Kretschmann, has once again spoken out in favor of reducing the electricity tax. He criticizes the federal government's decision not to reduce electricity taxes for all citizens and companies. According to Kretschmann, relief for trade and small industrial companies is urgently needed in order to make it easier for these companies to cope with the high electricity prices. In his statements, he underlines the importance of these companies for innovation, employment and economic recovery in Germany.
Kretschmann particularly emphasizes that the federal government's priorities, in particular the higher emphasis on mother's pensions, are in contrast to the challenges of economic competitiveness. He sharply criticized the decision of the leaders of the Union and SPD not to initially implement a general reduction in electricity tax. This measure is in line with the coalition agreement, which, however, is still subject to financing.
Political reactions and demands
Federal Chancellor Friedrich Merz (CDU) and Finance Minister Lars Klingbeil (SPD) defended the electricity tax decision based on budgetary constraints. Nevertheless, the parliamentary group leaders of the CDU and CSU are calling for the electricity tax to be quickly reduced to the European minimum. A decision made during a conference in Bad Dürkheim sees this measure as important to support companies and private households and to strengthen the competitiveness of the German economy.
According to the parliamentary group leaders, the desired reduction in electricity tax for the manufacturing sector is only the first step. Further relief should be implemented as soon as financial leeway is available. A reduction in electricity tax is seen as crucial to accelerate the transition to renewable energy. High electricity taxes have a negative impact on the incentive to replace fossil fuels with clean electricity and thus also place a burden on trade and small and medium-sized businesses.
Economic prospects
Manuel Hagel, the head of the parliamentary group chairman's conference, sees the reduction in the electricity tax not only as an opportunity to reduce the economic burden, but also as an opportunity to strengthen the population's trust in the state's ability to act and to stimulate the economy. This underlines the urgency with which political solutions must be found to meet the challenges of the market.