Aug 26

Tax on nuclear tone up in Germany

A new milestone was reached in the crisis between the energy industry and the German Government on the issue of extending the life of nuclear plants. The owner of EnBW, including French EDF is the largest shareholder and strategic partner, has launched a thinly veiled threat. "Our principle is to rotate plants if it is a reasonable economic standpoint," said Hans-Peter Willis in Handelsblatt. He warned that the plant closures are not excluded if the government insists on creating a new tax on atomic energy.

The debate has gained momentum last Saturday, with the publication in the press of a page of advertising in favor of increased use of nuclear power plants.Initiated by the four largest industrial energy E. ON, RWE, Vattenfall and EnBW, the approach has been signed by major industrial groups such as ThyssenKrupp, BASF and Bayer. The boss of Deutsche Bank, Josef Ackermann, also participated, to manager of the football team and son of a former boss of RWE Oliver Bierhoff.

The document does not boast only atomic energy, but expressed opposition to German industry to the proposed new tax advocated by the government in exchange for the continued operation of nuclear plants until 2032.The tax on fuel should bring 2.3 billion euros per year, according to Finance Minister, Wolfgang Schäuble, who proposed the idea at the announcement of the austerity plan of 80 billion euros in the spring.

But since the German economy is booming: growth this year should easily exceed the 3% projected by the head of economic research institute DIW, and exports are rising again and order books full. The opportunity is ideal for manufacturers to cast the threat of an emergency stop on growth if electricity became too expensive.

Merkel insists on its position

Since 2002, and the establishment of the Law on the exit from nuclear by 2022, the energy debate has never really ceased in Germany. In 2006, Merkel had spoken in favor of extending the life of plants.The problem is now that of aging, the most recent of which already 22 years. Maintenance costs are such that the operator EnBW may threaten to quit if his new tax is too heavy.

The Chancellor has also decided to get tough: "When something goes in the sense of threat or pressure, that pushes me in general in a move totally opposite," she told the group Madsack. Angela Merkel last attack, reports the German press, which now expects to see the two camps clash without pity.

The Chancellor must put order in his majority. The Vice-Chancellor FDP, Guido Westerwelle, undermined his party, wants to play his last card by being soft on the industry. The new energy plan must be reviewed on 1 September in the Council of Ministers.In the meantime, the war of the atom continues.

ALSO READ:

"Berlin postpones the abandonment of civilian nuclear

"Berlin wants to better secure nuclear