Söder Criticizes Merz Over Electricity Tax Ahead of Coalition Summit

Wed 2nd Jul, 2025

Berlin - As Germany's political leaders prepare for a crucial coalition summit, pressing issues such as electricity tax reform and social welfare policies dominate the agenda. The summit, set to take place this evening at the Chancellery, is expected to address the ongoing crises facing the CDU, CSU, and SPD.

Prior to the summit, CSU leader Markus Söder participated in a public grilling event, where he voiced his criticisms regarding the electricity tax, labeling it a significant issue that needs to be resolved. During the event, Söder emphasized the need for the government to take action on the electricity tax, which he believes should be eliminated.

Reports suggest that both Chancellor Friedrich Merz and Vice Chancellor Lars Klingbeil, the SPD leader and Finance Minister, are facing scrutiny for their approach to tax relief for citizens. Söder, in a light-hearted exchange, mentioned that he was unaware of the proposed changes until he read about them in the news, indicating a disconnect within the coalition.

Expressing a desire for change, Söder remarked on the importance of the government delivering on its promises. He urged that the coalition must implement the announcements it has made to regain public trust.

In addition to the electricity tax, Söder is also putting pressure on SPD leader Bärbel Bas regarding the timeline for reforms related to citizen benefits. He underscored that the coalition had previously agreed in their contract to expedite the process of reforming the citizen income program, and he hopes for swift progress on this matter.

Chancellor Merz has reportedly held private meetings with Bas and other social policy representatives to discuss a comprehensive social reform plan that exceeds the initial agreements made with the SPD. SPD social policy expert Dagmar Schmidt has emphasized the need for serious proposals that are financially viable, stressing the importance of strengthening the economy while also protecting vulnerable populations.

As discussions continue, it is clear that any additional demands from the Union will require concessions from the SPD, particularly concerning tax policies affecting middle and high-income earners. The coalition partners are expected to address these topics thoroughly during tonight's meeting.

Söder, meanwhile, expressed a light-hearted anticipation for the meal at the Chancellery, contrasting it with former Chancellor Scholz's vegetarian offerings, indicating a more traditional dining experience under Merz's leadership.


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