Berlin says electricity tax cut will be contingent on budgeting options

BERLIN, Oct 23 (Reuters) - The German government on Friday underscored plans to lower electricity taxes to the EU minimum but cautioned that this would depend on ways to offset the budget shortfall.

"The Chancellor is currently in discussions with the finance minister and other relevant ministers to address the wide-ranging challenges posed by the next budget. We remain, of course, committed to this goal," a government spokesperson said during a press conference.

A finance ministry spokesperson said such plans would lower annual tax revenues by about €5 billion ($5.6 billion) per year.

Chancellor Friedrich Merz on Monday vowed to lower electricity taxes for all consumers to the EU minimum, but Finance Minister Lars Klingbeil voiced caution on how to fund the move.

($1 = 0.8930 euros)

(Reporting by Ludwig Burger and Andreas RinkeEditing by Linda Pasquini)