NEWS

Germany Considers 'Nuclear Tax' Alternative

Germany’s Environment Minister Norbert Röttgen is currently considering the idea of putting extended working life times for nuclear reactors under the hammer, instead of, or indeed in addition to, the introduction of a nuclear fuel tax announced recently by the coalition government.

Eager to generate additional income for the state and to both increase competition and improve transparency within the industry, the idea of introducing an auction system for extended operating licences would indeed prove lucrative for the state, guaranteeing maximum revenue for the government amounting to tens of billions of euros, significantly higher than the fuel tax, expected to generate in the region of EUR2.3bn a year from 2011.

Such a proposal has inevitably provoked fierce criticism from all parties, raising concerns as to the safety of reactors, and the need to continue to search for a better means of energy production. Environment Minister Röttgen nevertheless referred to the idea as “an interesting proposal” meriting “serious” examination.

Alluding to the proposal as a “captivating idea”, Bavaria’s Economics Minister Martin Zeil of the ruling Free Democratic Party (FDP), argued that an auction is a sure way of determining the market value of additional energy production for operators. Zeil nevertheless urged the government to abandon any plans for a nuclear fuel tax if the auction system is given the go-ahead. Regarding the extension of operating licences, FDP leader Guido Westerwelle has suggested that the government could bypass the Bundesrat, Germany’s upper house of parliament, in order to gain approval.

Quelle: Tax-News.com

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