Latest news with #SPD-led
Yahoo
26-06-2025
- Business
- Yahoo
Germany's plans for selective electricity tax cut draw criticism
Germany's decision to implement a selective reduction in electricity taxes for various sectors, including energy, retail and industrial, has sparked concerns among industry stakeholders. The proposed cuts, aimed at easing financial pressures, have been met with criticism over potential market distortions and limited scope, as reported by Reuters. Germany has some of the world's highest electricity prices, ranking fifth globally in the first quarter of 2025 at an average 38 euro cents per kilowatt-hour. The German government agreed to lower the electricity tax to the European minimum for all consumers in the early part of the year. However, a recent budget framework from the Finance Ministry limits these reductions to industries such as agriculture and forestry while excluding many other businesses due to fiscal constraints. Handelsverband Deutschland trade association head Alexander von Preen stated: "With such a breach of the coalition agreement, the government is squandering the trust of the trade and tearing the rug out from under companies.' The move has led to disputes between members of the ruling coalition — the SPD-led finance ministry and conservative CDU/CSU - marking one of their first major disagreements. CDU/CSU parliamentary group deputy leader Sepp Mueller stated: 'Reducing electricity costs for everyone remains the party's goal. We now need to quickly discuss when we can implement this.' The Deutscher Industrie und Handelskammertag (DIHK, the Chamber of Industry and Commerce) describes the targeted cuts as disappointing given previous promises by the government for broader relief measures. DIHK president Peter Adrian stated: "No one understands why, despite the planned record debt, this already quite small but very important relief should not be possible.' Utilities lobby the Bundesverband der Energie und Wasserwirtschaft has raised alarms about potential market distortions and negative impacts on renewable energy growth. The national Bundesverband der Deutschen Industrie (industry association) has also criticised the measure's narrow focus and numerous restrictions, which it believes will not sufficiently lower prices to be competitive internationally. The Zentralverband des Deutschen Handwerks (Central Association of Skilled Crafts) has highlighted concerns that an industrial-focused price reduction would unfairly disadvantage small and medium-sized craft businesses which would indirectly subsidise this relief through their contributions. Economy Minister Katherina Reiche has announced that Germany would develop a detailed concept for industrial electricity pricing following new EU state aid guidelines permitting such subsidies. In April 2025, a report by the European Network of Transmission System Operators for Electricity proposed that Germany should consider splitting its electricity market into five distinct price zones to better reflect differing regional costs. The existing unified power market zone, which includes Luxembourg, is experiencing grid congestion and imbalances in the distribution of renewable energy, resulting in the recommendation. "Germany's plans for selective electricity tax cut draw criticism" was originally created and published by Power Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Yahoo
11-06-2025
- Politics
- Yahoo
German minister slams fellow Social Democrats over Russia stand-off
German Defence Minister Boris Pistorius on Wednesday rejected a manifesto containing demands by his centre-left colleagues for a reversal in the government's Russia policy. "This position paper amounts to a denial of reality," said Pistorius, one of the leading figures in Germany's Social Democratic Party (SPD), the current junior partner in the coalition government. "It exploits the desire of the people in our country for an end to the terrible war in Ukraine, for peace," he told dpa. Prominent SPD figures signed a manifesto calling for diplomatic talks with Russia, in what appears to be turning into a stand-off with party leadership over the government's defence policy. Germany is the largest supplier of military aid to Ukraine behind the United States. In a process initiated by the previous SPD-led administration, the new German government, in office since May 6, has vowed to boost military expenditure and is pushing for a massive hike to NATO defence spending in light of Russia's growing expansionist ambitions. SPD lawmakers up in arms The position paper, which has been made available to dpa and has been signed by more than 100 people, laments a "compulsion to increase armament and prepare for a supposedly imminent war." "Alarmist military rhetoric and huge armament programmes do not create more security for Germany and Europe, but lead to destabilization and a strengthening of the mutual perception of threat between NATO and Russia," the document states. While it is unclear whether all signatories are members of the SPD, prominent party figures including Rolf Mützenich, the former leader of the parliamentary group, former party chief Norbert Walter-Borjans, and foreign policy expert Ralf Stegner are among them, as are several federal and state lawmakers. Pistorius finds clear words Dubbed "Manifesto," the paper could cause a stir at the SPD party conference scheduled for later this month, where delegates are set to elect a new leadership following the disastrous showing in February's parliamentary elections. Defence Minister Pistorius said that while he shared the wish for peace, Russian President Vladimir Putin was rejecting offers from Ukraine for an unconditional ceasefire. "He breaks off negotiations. And when he does negotiate, he simultaneously bombs cities in Ukraine with even greater severity and brutality." This demonstrates that Russia does not want peace, or only on its own terms, he noted. Putin has thrown years of diplomatic mediation attempts to the wind, the minister argued. "He is pursuing a strategy of confrontation. Not us," Pistorius said, accusing the authors of the manifesto of disregarding the circumstances. Trouble on the horizon? Coming off the heels of leading a squabbling three-party coalition, the SPD, one of Germany's two traditional mainstream forces, was relegated to third place behind the conservative bloc and the far-right Alternative for Germany. The party conference will be preceded by the NATO summit in The Hague, where member states are expected to agree on a significant hike in defence expenditure. German Chancellor Friedrich Merz, a conservative, is pushing for a new target for NATO members to spend at least 3.5% of their gross domestic product (GDP) on defence, with an additional 1.5% on infrastructure. The manifesto's signatories call for "a return to dialogue with Russia once the guns fall silent, including on a peace and security order for Europe that is supported and respected by all." They argue that genuine confidence-building measures must be preceded by a cautious resumption of diplomatic contacts. They also oppose the stationing of new US mid-range missiles in Germany, as well as raising NATO defence spending to the target advocated by Merz.
Local Germany
02-06-2025
- Politics
- Local Germany
Germany sees record number of foreigners gaining citizenship
Germany recorded its highest number of naturalisations ever in 2024, with at least 249,901 people granted citizenship, up nearly 50,000 on the year before, according to data from 13 states reported by Welt am Sonntag. Lower Saxony, Saxony-Anhalt and Schleswig-Holstein did not report data. The surge follows major reforms to Germany's citizenship law introduced by the previous SPD-led government, which made naturalisation possible after just five years – and in exceptional cases as little as three. The previous government also legalised dual citizenship for non-EU citizens. In many states, Syrians made up the largest proportion of new citizens, followed by Turkish nationals. In North Rhine-Westphalia alone, more than 24,000 Syrians were naturalised, while the figure was over 9,000 in Bavaria. The number of Turkish citizens obtaining German nationality also spiked, increasing by over 80 percent in one state. Other groups with notable increases included Russian nationals. Despite the controversy over fast-track nationalisations, only a handful of people have been granted citizenship this way, the data reveals. Advertisement READ ALSO: Who will be most affected by move to end fast-track German citizenship? In Berlin, 382 people were made citizens under the fast-track programme, while in Rhineland-Palatinate the figure was 20, Baden-Württemberg 16, and Bremen zero. Take-up may be exceptionally low because requirements to be nationalised this way remain very high, including C1 German and evidence of exceptional professional and personal achievements, which many people struggle to achieve in just three years. Advertisement Many states reported that new citizens had lived in Germany far longer than legally required. Baden-Württemberg reported that the average person nationalised in the state had lived in Germany for 14 years. Still, the CDU-SPD coalition plans to scrap turbo nationalisations . Interior Minister Alexander Dobrindt said the move would eliminate a migration 'pull factor'. TELL US: Are you affected by Germany's plan to scrap fast-track citizenship? However, the broader reforms – including the five-year timeline and dual citizenship – will stay. But the Association of German Cities warned that immigration laws are changing too frequently, overburdening local authorities and causing long processing delays.
Yahoo
13-05-2025
- Politics
- Yahoo
Senior SPD figure rejects supplying German Taurus missiles to Kiev
The parliamentary group leader of Germany's Social Democrats (SPD) has rejected the possibility of supplying German-made long-range Taurus missiles to Ukraine. "We do not want to become a party of war and that is how we have always understood the rejection of the Taurus delivery and that is how it remains," said Matthias Miersch in Berlin on Tuesday. Kiev has long been pressing Germany to provide the cruise missiles which would allow it to strike targets on Russian soil far beyond the front line. The previous SPD-led government always rejected the request over concerns of being drawn into the war, but a new conservative-led government has since taken office in Berlin, fuelling hope in Kiev of a possible change of course. In the run-up to February's elections, new Chancellor Friedrich Merz signalled openness to providing the missiles to ramp up pressure on Moscow, but has said he would only do so in coordination with European partners. Following one of the worst election results in its history, the SPD agreed to become the junior partner in Merz's coalition government.
NBC News
06-05-2025
- Business
- NBC News
Friedrich Merz becomes Germany's chancellor after historic defeat in first round vote
Hours after he suffered a historic defeat, Friedrich Merz was elected as German chancellor on Tuesday. The leader of the center-right Christian Democratic Union (CDU) had been widely expected to win the vote to become the country's 10th chancellor since World War II. No candidate for chancellor in post-war Germany has failed to win on the first ballot, but Merz, 69, was six votes short, winning just 310 of the 316 he required to secure a majority in the lower house of parliament, or Bundestag. After announcing the result Bundestag President Julia Klöckner implored her colleagues to come to a result. 'The whole of Europe, perhaps the whole world, is watching this election,' Spahn said, adding, 'I appeal to everyone to be aware of this special responsibility.' Because the votes were secret ballots, it was not immediately clear who had defected from Merz's camp and it might never be known. He received 325 votes in the second ballot. Germany has not had a majority government since the collapse of Olaf Scholz's SPD-led three-way coalition last November. Merz won the federal election in February with 28.5% of the vote for the CDU/CSU conservatives. On his campaign trail, he promised voters that he would revitalize the German economy, tighten immigration, and boost the country on the world stage at a time when far-right movements are surging amid political uncertainty abroad and a weakened NATO alliance. The coalition government has promised to revive the economy amid a global trade war sparked by President Donald Trump's sweeping tariffs and increasing pressure on Europe to boost its defense spending. The far-right Alternative for Germany (AfD), which looks set to become the largest opposition party in parliament, seized on his failure to attack Merz. 'Merz is damaged, whatever else happens in future,' Bernd Baumann, the party's parliamentary group leader, said according to Reuters.
