Negotiations took place for almost 16 hours, then the mammoth budget for 2027 was finalized. It was worth more than 560 billion euros, including new debts of over 210 billion euros, which is the second highest level of new debt in the history of the Federal Republic.
What is still missing: the money to reduce electricity taxes. The approximately 5.4 billion euros required for this are not included in the draft. It remains to be seen whether it will stay that way until the budget is finally approved in the Bundestag at the end of November.
The criticism is massive, especially in the Union. Chancellor and CDU leader Friedrich Merz had just announced a reduction in electricity taxes for everyone four weeks ago. It is also agreed in the black-red coalition agreement. Federal Finance Minister Lars Klingbeil (SPD) currently sees no scope for reducing electricity taxes. The Union has so far not been able to assert itself here.
“Nicely banged”
"If you go outside and promise something to the citizens, then in the end you have to stick to it," said CDU budget politician Mathias Middelberg in the joint morning magazine of ARD and ZDF. "Otherwise, I completely understand if people are disappointed in us."
The grumbling is clearly audible in the Union. According to Middelberg, yesterday in the parliamentary group meeting with Merz “there was a lot of bang.” Loud criticism also came from the ranks of the CDU prime ministers.
Union hopes for coalition committee
There would have been opportunities to reduce the electricity tax "if we had really made an effort," explained Middelberg. This also applies to balancing the so-called cold progression, i.e. gradual tax increases. “I also think it’s worth continuing to work on the topic.” It is expected that the coalition committee will discuss the electricity tax issue again on Tuesday.
Criticism also came from the CDU Economic Council. “Especially when it comes to electricity tax, the last word must not yet have been spoken; it is now also about personal credibility,” said its Secretary General Wolfgang Steiger.
According to the parliamentary managing director of the SPD parliamentary group, Dirk Wiese, relief from electricity taxes would have to be “financed by new debts”. In any case, the SPD is “not averse to introducing this electricity tax relief”. There is currently no proposal for counter-financing.
Greens see a lack of planning and weak leadership
The opposition also sharply criticized the draft budget, particularly the lack of a reduction in electricity taxes. Green party leader Britta Haßelmann accused the government of lacking a plan and Merz's lack of leadership. “The big promises that Chancellor Merz made just a few days ago, the reduction in electricity taxes for everyone, this promise remains a broken promise,” said Haßelmann in the joint morning magazine of ARD and ZDF. “There is a way to do a lot of other things in this budget at very short notice.”
The left spoke of wrong priorities. "560 billion euros, more than ever, and there is supposedly 5.4 billion missing for the electricity bills of families and pensioners," said party leader Ines Schwerdtner, who is also a member of the budget committee. The sum is not missing, but rather the government lacks the will to provide it.
Does the electricity tax come retroactively?
Even after the budget consultations have been concluded, the coalition between the Union and the SPD could, according to the opposition, still anchor a reduction in electricity tax in the budget for 2027. Such a step would be possible via a plenary motion in the Bundestag and would not necessarily require a new meeting of the budget committee, said Green budget politician Sebastian Schäfer. However, he called such a procedure “very unusual.”
Left-wing budget holder Dietmar Bartsch called such a subsequent intervention in the budget "technically possible, but actually politically irresponsible."
Basic criticism of the opposition
But the opposition's criticism is not just limited to the electricity tax. “Dubious”, “manual errors” and “irresponsible” politics at the expense of future generations: this is how the reactions of the Greens and the Left to the mammoth budget and the mountain of debt can be summarized.
The budget means “more debt and more taxes and more burden for the contributors,” said AfD budget expert Michael Espendiller. The interest payments would add up to more than 80 billion euros per year in the 2030s. In view of tax increases for alcohol and tobacco, he accused the Union of breaking key election promises. On the other hand, the urgently needed reduction in electricity tax will not occur.
