The federal states are concerned about Germany as a business location and want to promote the possibility of an industrial electricity price in the EU. The state leaders must also overcome skepticism at the federal level.
The Prime Ministers’ Conference apparently wants to campaign for the EU Commission to be allowed to introduce an industrial electricity price at national level. In a “Brussels Declaration” NDR is available, the heads of government of the 16 federal states describe as an “acute obstacle to the recovery of the economy”. The “Handelsblatt” reported about it first.
“It must therefore be possible for the Member States for a transitional period to establish a competitive bridge electricity price, especially for energy-intensive companies that are in international competition, until affordable renewable energies are available to a sufficient extent,” the newspaper quoted from the paper, which accordingly to be published in the coming days.
The “Brussels Declaration” also warns against overburdening companies and households. “With regard to the pace of achieving climate neutrality, care must be taken to ensure that the international competitiveness of EU industry is maintained and acceptance by the population is guaranteed.” Small and medium-sized businesses and households with low incomes needed special support to make the necessary investments.
The prime ministers will meet in Brussels next Wednesday and Thursday for the first time since 2018. According to the “Handelsblatt”, they will meet, among others, Commission President Ursula von der Leyen, the new Vice President for the EU’s “Green Deal” climate protection package, Maros Sefcovic, and Energy Commissioner Kadri Simson.
Lindner has great doubts
In the traffic light coalition at federal level, an industrial electricity price is controversial. It is supported by parts of the Greens and the SPD, but rejected by Chancellor Olaf Scholz and the FDP.
Finance Minister Christian Lindner also repeated his doubts in ARD-Summer interview in Report from Berlin. “I have concerns about an industrial electricity price because a few large companies are relieved here at the expense of medium-sized companies.” He was more open about a reduction in electricity tax, which would potentially benefit both companies and citizens. However, Lindner called for clear counter-financing. And this debate is not being conducted, criticized the FDP politician.
“Different views” in Parliament
The Chancellor also wants to talk about the financing. It is easier to say who should be helped than to name the source of the money, Scholz said in an interview with Deutschlandfunk.
The chancellor named three possibilities for where the money could come from: the remaining electricity price payers will pay for the reduction in the electricity price for individual companies, the taxpayers will bear the costs, or new debt will be taken on. “And I think it’s quite obvious that there are still very different views in Parliament,” said Scholz.
Electricity prices in Germany have risen due to energy shortages after Russian gas supplies were cut after the start of the war of aggression against Ukraine.