Morning Briefing: At least it's energy that the state doesn't tax

One tax was not reduced, but two new taxes were not introduced - with this compromise the federal government is trying to get through the budget adjustment meeting this Thursday in one piece. Contrary to what Chancellor Friedrich Merz (CDU) promised, the electricity tax remains unchanged. In addition, the planned taxes on sugar and plastic are not coming – at least not in the short term.

The three parliamentary group leaders Thorsten Frei (CDU), Alexander Hoffmann (CSU) and Matthias Miersch (SPD) announced this after special meetings of their parliamentary groups yesterday evening. If the agreement holds, the way would be clear for a somewhat functioning federal budget in 2027.

So it's not the case that the black-red federal government can no longer agree on anything. The only problem is: Instead of real winnings, zero-sum games emerge. Politically, because it is a classic coalition stalemate. The Chancellor doesn't get his electricity tax cut, but the Vice President doesn't get his sugar tax.

There is hardly any financial change for citizens: a reduction in electricity tax would have brought an average of 80 euros per household per year. Money that no one has to spend on new taxes on sweets or plastic. The calculation only works for the finance minister. The electricity tax cut would have ripped a five billion euro hole in the budget, while the sugar tax would have brought in around 700 million euros and the plastic tax 1.5 billion euros.