Coalition agreement lacks energy taxes & levies reform, detail – opinion

It is surprising that the would-be government coalition partners of Angela Merkel’s CDU/CSU alliance and the Social Democrats (SPD) did not agree to push for a fundamental reform of Germany’s energy taxes and levies system in the coalition talks, because many negotiators had advocated for it beforehand, writes Andreas Mihm in an opinion piece in Frankfurter Allgemeine Zeitung. The parties had instead agreed to “regulate details” and introduce more ambitious climate targets. The government aims to largely electrify all sectors, but makes the use of power less attractive by upholding the current taxes and levies, writes Mihm. As many provisions in the coalition agreement lack precision and detail, the next energy minister – possibly the Merkel ally and current Chief of the Chancellery Peter Altmaier – will have quite a bit of leeway, writes Mihm.

Read the opinion piece (behind paywall) in FAZ’s e-paper here.

For background, read the CLEW factsheet Germany ponders how to finance renewables expansion in the future and dossier The next German government and the energy transition.