Political scientist on industrial electricity prices: No “reform autumn”

Coalition: "Signals the ability to act"

For political scientist Albrecht von Lucke, the “autumn of reform” is long over because the “big questions” “have not been answered.” But you are trying to send a positive signal.

11/14/2025 | 6:01 min


In the opinion of political scientist Albrecht von Lucke, the economic reform package approved by the federal government is not enough to bring about a turnaround. “We can’t handle big problems with this small package,” he told ZDF’s morning magazine.

Watch the full interview in the video above or read an excerpt here:

On Thursday evening, the CDU, CSU and SPD agreed on the introduction of industrial electricity prices, a reduction in aviation taxes and German funds to support medium-sized businesses and start-ups. These “ad hoc steps” came under great pressure, von Lucke said.

Friedrich Merz himself has long acknowledged that this is not the autumn of great reforms.

Albrecht von Lucke, political scientist

No decision on combustion engines and retirement

Big questions so far remain unanswered: such as the end of the combustion engine or its retirement, according to the political scientist. The Junge Union, which is demanding changes to the pension package, has the opportunity to reduce the package. There has been no progress on climate protection – quite the opposite.

Coalition committees strengthen the economy

Industrial electricity prices, aviation tax reduction, German funds for investment in startups: The coalition committee of the Union and the SPD has passed a resolution to strengthen the economy.

11/14/2025 | 2:39 min


The fact that the coalition is again lowering air traffic taxes, which were deliberately introduced to make flights more expensive, shows that ecology is at a disadvantage compared to the economy in this government, von Lucke said.

Von Lucke: It is important for Black and Red to demonstrate the ability to act

It was important for the black-red coalition to signal that it was capable of action, von Lucke said. The coalition may still have another three autumns to implement its promise of an “autumn of reform”.

We will see a coalition of reform efforts. Will major reforms occur? I’m not sure about that.

Albrecht von Lucke, political scientist

Spahn: "Economy first"

For the head of the Union’s parliamentary group, Jens Spahn, industrialization and climate protection “should not be a contradiction”. If our industry continues to shrink, we will face “serious problems.”

11/14/2025 | 7:27 min


DIW: The decision appears to be driven by lobbying interests

Critical voices also come from the business world, for example regarding industrial electricity prices. “The coalition committee’s decision appears to be driven by lobbying interests and has a negative impact on the German economy,” said Marcel Fratzscher, President of the German Institute for Economic Research (DIW).

Industrial electricity prices hurt most German companies, who end up having to pay higher energy costs.

Marcel Fratzscher, DIW President

“The goal of reducing electricity costs is appropriate,” said President of the Kiel Institute for the World Economy (IfW), Moritz Schularick. “But expanding electricity supply and price zones would be a better answer than new subsidies.”

Miersch: stop line - "important point"

SPD parliamentary group leader Matthias Miersch was satisfied with the agreement in the coalition committee. If there is an open question about retirement, he sees “no reason to make any changes.”

11/14/2025 | 4:57 min


A joint response to air traffic taxes

DIW President Fratzscher called the reduction in aviation taxes a “fatal signal”. This “underscores that the federal government still does not understand the importance of targeted economic policies and is allowing itself to be dominated by lobbying interests,” the DIW President said.

Friedrich Heinemann, a financial expert at the Center for European Economic Research (ZEW), believes the reduction makes sense. Intra-European air traffic is already subject to European emissions trading, so a ticket tax is not required.

There is no electricity tax deduction for small businesses

The results of the coalition committee on the electricity tax were a bitter disappointment for households and small businesses. Therefore, there is no tax cut plan for them.

July 4, 2025 | 1:34 min


The case is different for intercontinental flights, which are not subject to emissions trading. In theory, an aviation tax might make sense here. “In reality, it would not help the climate if planes took off from Paris instead of Frankfurt,” Heinemann said. Therefore, harmonized taxes in Europe would be desirable for intercontinental traffic.

The interview was conducted by ZDF morning magazine presenter Eva-Maria Lemke. Anja Engelke summarizes it with information from Reuters.