Länder press for a faster electricity tax cut

The state premiers met in Berlin on 22 October 2026 and asked the federal government to cut the electricity tax for everyone as quickly as possible. The coalition agreement of the CDU/CSU and SPD government promised a cut for all to the European minimum, but that commitment has not been carried out. So far the tax has only been lowered for industry, manufacturing, and agriculture and forestry, while private households and other businesses have seen no reduction.

Chancellor Friedrich Merz (CDU) also wants budget room used to deliver the promise in full. Finance Minister Lars Klingbeil (SPD) is generally open to that but doubts it can be financed. Before the meeting, North Rhine-Westphalia's premier Hendrik Wüst (CDU) had pressed hard for the cut, saying:

“Energy costs have become an enormous burden for many people.”

Mecklenburg-Vorpommern's premier Manuela Schwesig (SPD) called the cut urgently needed and argued that electricity is already being produced in Germany for five cents. Rhineland-Palatinate's premier Gordon Schnieder (CDU) said the unmet coalition promise is damaging trust, and he named 1 January as his preferred date for the cut.

“That breaks trust, and to a degree it destroys it.”

Fuel price cap and CO2 pricing

In September the federal government announced talks with the oil industry on a fuel price cap, with the aim of introducing it by 1 January at the latest. The states now want Berlin to put forward a proposal quickly. Lower Saxony's premier Olaf Lies (SPD) argued that a cap would give people a sense of fairness, so they no longer pay at the pump for companies that raise their profits that way. He also wants the federal government to settle the question now, so it is clear what happens after 1 January 2027. Luxembourg and Belgium already have similar state requirements.

Germany's fuel rebate of 16.7 cents per litre has applied since early October and is limited to the end of the year. The government expects it to reduce tax revenue by 2.485 billion euros. Thuringia's premier Mario Voigt (CDU) backs the electricity tax cut but also wants CO2 pricing on fuel suspended, and he recorded that position in a protocol declaration to the MPK.

“With this we would give people additional relief when refuelling and heating.”

Doubts over financing

Lies warned that the outlook is difficult if the economy does not improve further, and he called lower energy and electricity costs a more effective tool than many funding programmes currently in place. Bremen's premier Andreas Bovenschulte (SPD), who is the outgoing Bundesrat president, said he considers the cut right in principle but that it has financial consequences that must be examined closely. Klingbeil made his point when presenting the results of the tax estimate, saying that anyone proposing the cut should also bring proposals for how to finance it.

AfD question and the chair of the MPK

The AfD question loomed over the meeting, because Saxony-Anhalt could soon have an AfD minister-president. Saxony-Anhalt would normally have taken over the chair, but the government situation in Magdeburg is unclear and incumbent Sven Schulze (CDU) gave up the chair, so Schnieder continues in it. Schleswig-Holstein is due to take over in October 2027. Schnieder said the AfD question played no role in the meeting, though it has long been on the agenda.

Schwesig had proposed a federal-state working group to examine an AfD ban procedure, an idea Wüst raised in September. Wüst said the examination must be open-ended and must not automatically lead to a ban procedure. Only the Bundestag, the Bundesrat or the Bundesregierung can file a ban application with the Federal Constitutional Court, and no decision on the matter was taken on 22 October.