The federal government says it will lower electricity taxes to the EU minimum only if the lost revenue is made up.
Germany’s federal government said on Friday, 16 October 2026, that it remains committed to cutting electricity taxes to the EU minimum, but only if the resulting budget shortfall is offset.
A finance ministry spokesperson said the cut would reduce annual tax revenues by about EUR 5 billion.
Chancellor Friedrich Merz had pledged on 12 October 2026 to lower the tax for all consumers, while Finance Minister Lars Klingbeil urged caution over how to fund it. No funding plan has been announced.
