Finance minister Christian Lindner floated the option as a cheaper alternative to rolling out a reduced power price for industry, according to an interview with newspaper Welt published Sunday. While the Economy Ministry continues to push for broader industrial relief, a spokesperson said it would “expressly welcome” the measure.
The subsidy — which was already prolonged last year — currently reimburses about 90% of energy taxes for around 9,000 companies. The government’s budget plan for next year didn’t initially foresee prolonging the €1.7 billion measure, prompting warnings from industry associations that full taxation would increase energy bills tenfold in an already tense situation.
Germany’s manufacturers are still reeling from the consequences of last year’s energy crisis, and are increasingly eyeing production abroad amid high energy prices at home. While Lindner is trying to rein in government spending after years of crisis support, his coalition partners are still pushing for a reduced power price to support the nation’s energy-intensive industry, a measure that would cost significantly more than prolonged tax relief.