German companies, especially in sectors such as chemical and metal manufacturing, have struggled with a surge in power prices triggered by Russia's war in Ukraine. Photo: Ina FASSBENDER / AFP/Filefor the manufacturing sector, in a bid to shore up an economy that many fear could end the year in recession.
In 2024 and 2025, electricity tax will be slashed from the current 1.537 cents per kilowatt to the European Union minimum of 0.05 cents per kilowatt for the manufacturing sector. The agreement on the help package for manufacturers came after weeks of hefty discussions between the industry and the German government.German companies, especially in sectors such as chemical and metal manufacturing, have struggled with a surge in power prices triggered by Russian energy supply cuts in the wake of Moscow's war inBut the finance ministry had baulked at the huge costs and warned against market distortion.