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German government scraps electricity tax cuts for households
German government scraps electricity tax cuts for households

Local Germany

time03-07-2025

  • Business
  • Local Germany

German government scraps electricity tax cuts for households

Reducing electricity costs, for both businesses and private homes, was among the conservative Union parties' (CDU/CSU) major promises during their campaign at the start of the year. But now, as the leaders of the black-red government, along with the Social democrats (SPD), they have decided to rescind the proposed electricity tax cuts for private homes, citing budget constraints. The move can be seen as a significant early failure for Germany's federal leadership. Cutting the electricity tax quickly and "for everyone" was written into their coalition agreement. READ ALSO: Why Berlin has the highest electricity prices among Europe's capital cities Budget constraints The cabinet decided last week to initially reduce the electricity tax only for the manufacturing, agriculture and forestry industries. Cutting electricity taxes for businesses was a top item among the conservatives' plans for boosting the German economy. But to extend the tax cuts to private households, as was originally promised, has since been deemed too expensive. Doing so was expected to cost €5.4 billion in 2026. As of Wednesday, the coalition partners have failed to find financing for the household tax cuts. Germany has some of the highest electricity taxes among European countries - a fact that has been both exaggerated and weaponised by members of the far-right Alternative for Germany . Facing both reduced tax revenue and enormous expenses for defence and infrastructure revitalisation projects, the German government has hinted that savings will need to be found elsewhere. READ ALSO: Why Germany's new government is already facing a black hole in its budget Union leader defends the decision Union parliamentary group leader Jens Spahn told the ARD morning magazine that the coalition is "sticking to the common goal of significantly reducing electricity costs for everyone". Spahn cited plans to reduce electricity grid fees and scrap the gas storage levy from the beginning of 2026, which would be expected to reduce prices for private households. For her part, the chairwoman of the German Social Association (SoVD), Michaela Engelmeier, sees the move as a "fatal signal". READ ALSO: How Germany's electricity tariff rules have changed 'Wrong priorities' Critics of the move see it as aiding big industry players while ignoring the needs of private consumers and small business. The German Confederation of Skilled Crafts (ZDH) said the policy would be 'a blow to small and medium-sized enterprises.' Advertisement In a report by ZDF , the President of the German Chamber of Industry and Commerce noted 'many angry calls from companies that had been counting on a reduction in electricity tax'. The news comes at a striking time, as Germany has just been hit by a severe heatwave . Climate researcher Mojib Latif accused Chancellor Friedrich Merz and Federal Minister of Economics Katherina Reiche of having the "wrong political priorities", according to reporting by the Redaktionsnetzwerk Deutschland . An op-ed published by Spiegel argues that by relieving the gas levy but not reducing electricity costs the black-red coalition is effectively promoting the use of climate harming fossil fuels. With reporting by DPA.

Germany and COVID-19: What went wrong? – DW – 06/28/2025
Germany and COVID-19: What went wrong? – DW – 06/28/2025

DW

time28-06-2025

  • Health
  • DW

Germany and COVID-19: What went wrong? – DW – 06/28/2025

The German parliament is seeking to assess the political impact of the COVID-19 pandemic. Former Health Minister Jens Spahn is under attack over the possible misuse of public funds. Jens Spahn, the former German health minister, faced scrutiny this week over the possible misuse of public funds in the large-scale procurement of face masks during the COVID-19 pandemic. He had to answer to questions from the budget committee over why he ordered masks at a very high price and then failed to accept or pay for them. Germany's government could face payments of some €2.3 billion ($2.7 billion) to health-product manufacturers if courts rule against it in the dozens of lawsuits that have been filed over the issue. Spahn has defended his actions, though he admitted last year that he should have done things differently. The heavily redacted version of a report commissioned by Spahn's successor, Karl Lauterbach, was presented to the budget committee of the Bundestag this week. It stated that Spahn's procurement decision was made "against the advice of his specialized departments." The socialist Left Party has called for Spahn to step down from his current role as parliamentary leader of the ruling conservative bloc of Christian Democratic Union and Christian Social Union (CDU/CSU), one of the most powerful positions in the Bundestag. "Anyone who throws our tax money out of the window so carelessly should no longer be allowed to hold an important political office," said Left Party co-leader Ines Schwerdtner. To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video Germany's governing parties — the CDU/CSU and the center-left Social Democrats (SPD) — have sought to establish an inquiry commission to investigate actions taken by the government during the pandemic, including lockdowns that had a major impact on the country's economy. The Left Party had already suggested such a commission last year. "Firstly, lost trust should be regained through a serious review," read the party's motion put to the parliament. "Secondly, to gain insights and recommendations for action that will help us to deal with the pandemic in a more forward-looking, intelligent and effective way before and during a recurring pandemic situation." Among the supporters of such a commission is Hendrik Streeck, who became known as one of Germany's leading virologists during the pandemic. He went on to win a Bundestag seat for the center-right CDU in Bonn in February this year. The 47-year-old now sits on the parliamentary health committee and is also the federal commissioner for addiction and drug issues. Streeck considers it "absolutely necessary" to re-examine how the pandemic was handled, since it was the biggest health crisis since World War Two, he told DW. Streeck is hoping to get answers to the question of how scientific advice reaches the government in a crisis like the coronavirus pandemic. "This is an area of tension between science, politics and the public," the virologist said. He also wants the new commission to take a critical look at the coordination between the federal and state levels of government. During the pandemic, the leaders of Germany's 16 states convened with the federal government to agree measures such as imposing complete lockdowns. Streeck doubts that this was the best framework, as it meant that the parliament was often relegated to a limited control function. Trained nurse and Left Party Bundestag member Stella Merendino, also a member of the health committee, also wants a review as the basis for lessons to learned for the future. "I experienced the pandemic in a hospital emergency room," she told DW. "I saw people die alone, while we were not allowed to let them see their relatives." The 31-year-old also saw hospital staff collapse from exhaustion and grief. "We worked through shifts without knowing whether we would stay healthy ourselves," she said. "There was no adequate protective equipment, no psychological support, hardly any recognition and, to this day, no systematic evaluation of what this meant for our staff." Merendino also believes that many people were left alone during the pandemic to cope with their economic worries, childcare, and loneliness. "This has fueled anger and mistrust that continues to this day," she said. "We don't have to convince everyone, but we have to listen. And as politicians, we must have the courage to admit mistakes." Above all, Merendino expects to ensure more support for people who are still suffering from the consequences of COVID-19. "I know nursing staff who are no longer able to work because of Long Covid. Many are fighting for recognition, for medical care, for financial security. And all this in a healthcare system that is already overburdened." Meanwhile, Streeck believes that the commission should look beyond Germany's borders for its reappraisal. "More data, more analysis would help us to get a more accurate picture," he said. He is convinced that this would help mitigate the divisions he still sees in society. Streeck says that three groups have formed: "Some who don't want to deal with it. The others who say: We were too lax, we did too little. And the third, who say: We went far too far." Everyone has to be taken seriously, says Streeck. "The best thing that can happen is to talk about it." The review commission could be set up to start its work after the summer break, in September you're here: Every Tuesday, DW editors round up what is happening in German politics and society. You can sign up here for the weekly email newsletter, Berlin Briefing.

Top German conservative says armed forces need to prepare for draft
Top German conservative says armed forces need to prepare for draft

Yahoo

time14-06-2025

  • Politics
  • Yahoo

Top German conservative says armed forces need to prepare for draft

A leading politician in Chancellor Friedrich Merz's conservative party wants the German armed forces to start getting ready for a return to compulsory military service. Jens Spahn, the leader of parliamentary group of Merz's Christian Democratic Union (CDU) and its Bavarian sister party, the Christian Social Union, said the military, or Bundeswehr, must start making plans for a draft. "The Bundeswehr must definitely establish a structure that allows for a swift return to conscription. This cannot happen overnight, but we need to start preparing," Spahn told the Rheinische Post newspaper. He said Germany must regain its ability to defend itself, which would require up to 60,000 additional soldiers for the Bundeswehr. "If this can be achieved through voluntary service, good. However, my impression is that we will need conscription for this," said the CDU politician. Conscription was suspended in 2011 under then defence minister Karl-Theodor zu Guttenberg (CSU) after 55 years. Bundestag's Defence Commissioner Henning Otte also insisted on mandatory military service if there are not enough volunteers. "If that is not sufficient, it must be expanded to include mandatory elements," the CDU politician told the Welt am Sonntag newspaper. "It is the government's responsibility to draft this law with its mandatory components in a way that is constitutionally sound and can be passed this year," he said. If Germany returns to a draft, one question likely to be discussed is whether it would also apply to women. The previous draft was for men only. Spahn sees legal barriers to expanding the draft. "If the old conscription is reinstated, it will only apply to men," Spahn said, adding that is what is provided for in the German Constitution. To change that the document "would need to be amended. I do not see this happening in the next four years," he told the Rheinische Post. A constitutional amendment requires a two-thirds majority in both the Bundestag and Bundesrat, the upper house of parliament composed of leaders of German states. Former defence minister Annegret Kramp-Karrenbauer of the CDU wants a draft for women too. "If we look at the declining birth rates, the question will ultimately arise as to whether we can afford to exclude any group. This means women would also have to be included in conscription," she told the Berliner Zeitung newspaper. Kramp-Karrenbauer also advocated for preparing for a possible reintroduction now. The coalition agreement between the CDU/CSU and the Social Democrats does not mention the word "conscription." Instead, it states: "We are creating a new, attractive military service initially based on voluntariness." Defence Minister Boris Pistorius has made it recently repeatedly clear that service can be voluntary - only if it meets the recruitment demands. Bundestag President Julia Klöckner stressed the coalition's "initally" wording, saying, "this does not rule out the possibility of reintroducing conscription in the future, depending on demand and with the necessary infrastructure. But she told the RND media group that she's a fan of general compulsory service. Chancellor Merz has not ruled out additional steps but has often spoken of instituting a required so-called "social year" which could be spent in the military or working in areas valuable to the society at large.

AfD Is Now Germany's Most Popular Party For The First Time Ever As 'Ban' Efforts Escalate
AfD Is Now Germany's Most Popular Party For The First Time Ever As 'Ban' Efforts Escalate

Gulf Insider

time23-04-2025

  • Politics
  • Gulf Insider

AfD Is Now Germany's Most Popular Party For The First Time Ever As 'Ban' Efforts Escalate

The Alternative for Germany (AfD) has hit a historic watermark, and is now the most popular party in Germany for the first time ever, reaching 26 percent. The poll, from Forsa, shows the Christian Democratic Union (CDU) in second place with 25 percent. If the vote were held today, the two parties set to enter government, the Social Democrats (SPD) and the CDU, would not have enough votes to enter government. The SPD is at 15 percent, giving the two parties a combined total of 40 percent. The poll showed that support for the Greens dropped a point to 11 percent and the Left Party also dropped a point to 9 percent. BREAKING: 🇩🇪The AfD party is now the most popular party in Germany for the first time ever, soaring to 26%.The main German parties are working to ban the AfD, and a vote on a ban is expected in the coming months in the new @RMXnews — Remix News & Views (@RMXnews) April 22, 2025 The news comes at a time when the left is racing to vote on a ban on the AfD in the German parliament, the Bundestag, a topic covered in detail by Remix News. However, despite inital reports that the CDU would back such a ban, the picture is becoming muddier. For one, there are more and more voices in the CDU and its sister party, the CSU, who are calling for 'more calm' towards the AfD, including from the influential vice-chairman of the CDU/CSU parliamentary group, Jens Spahn. Spahn even said that the AfD should be able to lead some of the committee in the Bundestag, which would give the party more say and power. Given that it received the second-most votes during the German election, it should, like all other parties, have access to these committees, but many want to shut it out completely, especially from intelligence committees. The issue could lead to a major split in the coalition between the CDU and SPD. SPD Bundestag member Ralf Stegner told Welt his party has 'absolutely no sense of humor' on any attempt to go easy on the AfD. 🇩🇪🚨 "Germany needs the AfD"Young women are increasingly promoting the AfD party on of them feel increasingly unsafe in Germany, and they believe AfD is the answer. — Remix News & Views (@RMXnews) February 16, 2025 He said any kind of rapprochement would represent a 'maximum stress test' for the new coalition govenrment. 'Anyone who wants to form a coalition with the SPD cannot join forces with right-wing radicals. And joining forces also means voting for enemies of democracy,' he said. The MP, known for his left-wing views, instead is calling for a ban on the AfD if the Federal Office for the Protection of the Constitution (BfV) classifies the party as 'confirmed right-wing extremist.' 'If the Office for the Protection of the Constitution upgrades its classification, then we also have a duty to work towards initiating a ban on the party,' Stegner said. 🇩🇪‼️ Young German woman explains why voters are turning to the AfD"I'm afraid to travel by train, afraid to go into town, afraid to do anything in public. And they talk about people being afraid of the AfD. The AfD has done nothing to anyone, unlike other people." — Remix News & Views (@RMXnews) February 10, 2025 However, Welt reports that CDU is rejecting an 'automoatic' approach to banning the AfD. Click here to read more…

Senior German conservative casts doubt on €15 minimum wage by 2026
Senior German conservative casts doubt on €15 minimum wage by 2026

Yahoo

time10-04-2025

  • Business
  • Yahoo

Senior German conservative casts doubt on €15 minimum wage by 2026

A top German conservative has cast doubt on whether a €15 ($16.50) hourly minimum wage can be achieved by 2026, just one day after the target was outlined in a coalition agreement. Jens Spahn, the deputy parliamentary leader for the Christian Democratic Union (CDU), told broadcaster RTL/ntv on Thursday that it was "unlikely" Germany "will see enough growth and wage progression" for the target to be met by next year. The CDU presented its coalition deal with the Bavaria-only Christian Social Union (CSU) and the Social Democratic Party (SPD) on Wednesday, with the 144-page document stating that a €15 minimum wage - up from the current €12.82 - was "achievable" in 2026. Germany's Minimum Wage Commission is responsible for setting the figure, but the coalition agreement seeks to tweak the rules for the commission's calculations, aiming to tie the minimum wage to 60% of median pay. Spahn reiterated that the coalition will not set a statutory €15 minimum, but that the figure "would develop along with general wages in Germany." The former health minister is expected to hold a senior position in the new government but refused to be drawn into speculation on his future role.

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