London Daily

Focus on the big picture.
Tuesday, Jul 01, 2025

Germany’s Habeck admits gas levy mistake

Germany’s Habeck admits gas levy mistake

The minister’s surcharge plans prompted a backlash after it emerged profit-making companies could benefit.
Robert Habeck is trying to correct his first major misstep.

Germany’s Green vice chancellor has had a fairly good crisis so far — but his plans for a gas levy on consumers have drawn a backlash.

Last week, the government in Berlin passed the so-called gas surcharge, which will see Germans pay a few cents extra per kilowatt-hour of gas, meaning an average four-person household will pay €480 more a year.

The revenues are meant to finance a support fund for struggling energy companies to ensure the country’s supply won’t be disrupted as utilities face soaring costs for replacing Russian imports. A large chunk will go to Uniper, which recorded billions in losses.

But this week, it emerged that companies raking in record-high profits could also benefit from the surcharge.

Consumer protection groups were outraged.

"It is incomprehensible that with the gas levy [households] should support companies that are making a tidy profit,” said Federal Consumer Association chair Ramona Pop.

Habeck, Germany’s economy and climate minister, initially tried to defend his policy and asked profit-making companies to voluntarily waive any support claims. But after mounting criticism from the opposition and even within his own government, he backtracked.

At a business conference Thursday evening, Habeck said he would try to limit which companies can benefit from the revenues and acknowledged the current design of the levy presented a “political problem” that “has really ruined my day for the last 48 hours.”

The criticism, he admitted, was “correct.” He added that the current design meant companies may have a “legally justified claim. We will look at that again to see if there is a way to ward off this justified claim,” signaling potential legal problems with revising the levy at this stage.

“But,” he said, according to a transcript of the speech, “it is certainly not morally right for companies that — let me say it plainly — have earned big bucks to say: 'For the handful of revenue losses we had, we'll ask the population ... to also give us money.'”

Finance Minister Christian Lindner also said he was open to revising the measure.

For Habeck, whose popularity has soared far past Chancellor Olaf Scholz’s approval ratings, the gas levy marks his first significant blunder since taking office in December.

In previous months, he’s been busy shoring up Germany’s energy supply for the winter. That meant restarting coal plants, begging Middle Eastern autocrats for fossil fuels and taking another look at the country’s nuclear phaseout — a less-than-ideal image for a Green climate minister.

But he’s won plaudits for solid crisis management. Germany’s gas storage sites are more than 80 percent full — well ahead of schedule — a demand reduction plan has just been approved, and a major renewables bill was passed by parliament earlier this summer.

The levy’s design, however, prompted criticism even from within the coalition. Social Democrat chair Saskia Esken and Green youth wing leader Sarah-Lee Heinrich were among those who attacked the plan.

"It can’t be that society should now bear the losses while many companies have made excess profits during this crisis,” said Heinrich.
Newsletter

Related Articles

0:00
0:00
Close
Robots Compete in Football Tournament in China Amid Injuries
Trump Administration Considers Withdrawal of Funding for Hospitals Providing Gender Treatment to Minors
Texas Enacts Law Allowing Gold and Silver Transactions
China Unveils Miniature Insect-Like Surveillance Drone
OpenAI Secures Multimillion-Dollar AI Contracts with Pentagon, India, and Grab
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Germany Votes to Suspend Family Reunification for Asylum Seekers
Elon Musk Critiques Senate Budget Proposal Over Job Losses and Strategic Risks
Los Angeles Riots ended with Federal Investigations into Funding
Budapest Pride Parade Draws 200,000 Participants Amid Government Ban
Southern Europe Experiences Extreme Heat
Xiaomi's YU7 SUV Launch Garners Record Pre-Orders Amid Market Challenges
Jeff Bezos and Lauren Sanchez's Lavish Wedding in Venice
Russia Launches Largest Air Assault on Ukraine Since Invasion
Education Secretary Announces Overhaul of Complaints System Amid Rising Parental Grievances
Massive Anti-Government Protests Erupt in Belgrade
Trump Ends Trade Talks with Canada Over Digital Services Tax
UK Government Softens Welfare Reform Plans Amid Labour Party Rebellion
Labour Faces Rebellion Over Disability Benefit Reforms Ahead of Key Vote
Jeff Bezos and Lauren Sánchez Host Lavish Wedding in Venice Amid Protests
Trump Asserts Readiness for Further Strikes on Iran Amid Nuclear Tensions
North Korea to Open New Beach Resort to Boost Tourism Economy
UK Labour Party Faces Internal Tensions Over Welfare Reforms
Andrew Cuomo Hints at Potential November Comeback Amid Democratic Primary Results
Curtis Sliwa Champions His Vision for New York City Amid Rising Crime Concerns
Federal Reserve Proposes Changes to Capital Rule Affecting Major Banks
EU TO HUNGARY: LET THEM PRIDE OR PREP FOR SHADE. ORBÁN TO EU: STAY IN YOUR LANE AND FIX YOUR OWN MESS.
Trump Escalates Criticism of Media Over Iran Strike Coverage
Trump Announces Upcoming US-Iran Meeting Amid Controversial Airstrikes
Trump Moves to Reshape Middle East Following Israel-Iran Conflict
Big Four Accounting Firms Fined in Exam Cheating Scandal
NATO Members Agree to 5% Defense Spending Target by 2035
Australia's Star Casino Secures $195 Million Rescue Package Amid Challenges
UK to Enhance Nuclear Capabilities with Acquisition of F-35A Fighter Jets
Russian Shadow Payments via Cryptocurrency Reach $9 Billion
Explosions Rock Doha as Iranian Missiles Target Qatar
“You Have 12 Hours to Flee”: Israeli Threat Campaign Targets Surviving Iranian Officials
Macron and Merz: Europe must arm itself in an unstable world
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Airlines Evaluate Flight Cancellations Amid Escalating US-Iran Tensions
Starmer Invites Innovators to Join Government Talent Scheme
UK Economy’s Strong Opening Quarter Shows Signs of Cooling
Harrods Seeks Court Order to Secure Al Fayed Estate for Victims
BA and Singapore Airlines Cancel Dubai Flights Amid Middle East Tensions
Trump Faces Backlash from MAGA Base Over Iran Strikes
Meta Bets $14 B on Alexandr Wang to Drive AI Ambitions
WATCH: Israeli forces show the aftermath of a massive airstrike at Iran's Isfahan nuclear site
FedEx Founder Fred Smith, ‘Heart and Soul’ of the Company, Dies at 80
Chinese Factories Shift Away from U.S. Amid Trump‑Era Tariffs
Pimco Seizes Opportunity in Japan’s Dislocated Bond Market
×