The German government has decided against implementing promised electricity tax cuts for households and small businesses, maintaining some of the highest electricity prices in Europe. The controversial decision follows a failure to find systematic financing for the cuts, which were estimated to cost €5.4 billion in 2026. Negotiations took place among the coalition partners, but no agreement could be reached. However, the government has agreed to bring forward changes to the Mothers' pension by one year.
Households in Germany will continue to face some of the highest electricity prices in Europe after the government decided not to implement promised electricity tax cuts.
The black-red coalition's failure to deliver on electricity tax cuts emerged from a lengthy debate about financing, hindering the original agreement to reduce energy costs for families.
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