German industry heads criticise Merkel nuclear tax

BERLIN Aug 20 (Reuters) - Dozens of German industry bosses have signed an open letter criticising Chancellor Angela Merkel's plans for a tax on nuclear power providers, accusing her of putting the country's future energy supply at risk.

Led by the heads of Germany's biggest utilities, industry bosses and members of her own Christian Democrats (CDU) urged Merkel to drop a proposed tax on nuclear fuel her centre-right government wants to raise to aid its budget consolidation plans.

The letter follows weeks of protest by the utilities about the tax, which Merkel's coalition hopes will raise 2.3 billion euros a year as part of an 80 billion euro consolidation drive.

"This is about securing the basis on which we live for tomorrow and Germany's ability to thrive as a place for business in future. It concerns all of us," said the letter, which was seen by Reuters on Friday.

"Policies that aim to consolidate the budget with new energy taxes block necessary investment in the future. For example: the planned nuclear fuel tax or new increases in energy tax must not lead to future investments being prevented," it added.

The government said this week it would postpone a decision on the nuclear tax to give it more time to talk to utilities, which also want to have the lifespan of nuclear plants extended. [ID:nLDE67H0WB]

The protest letter, which comes as the government prepares to lay out its long-term energy strategy at the end of September, also took aim at other sources of power generation.

"Renewable energies -- particularly solar energy -- lead to much higher added costs in the long term, which will be 8 billion euros this year," said the letter, also signed by the manager of Germany's national football team, Oliver Bierhoff.

Among the signatories were Deutsche Bank Chief Executive Josef Ackermann, as well as the CEOs of state-owned rail operator Deutsche Bahn, chemicals firm BASF, steelmaker ThyssenKrupp, retailer Metro, and utilities E.ON, RWE, EnBW and Vattenfall, which provide some 80 percent of Germany's power.

The heads of leading German industry associations also lent their support, as did prominent pro-business figures from Merkel's conservative CDU including Michael Fuchs, a deputy head of the party in the Bundestag lower house of parliament.

(Reporting by Dave Graham and Tom Kaeckenhoff; editing by Keiron Henderson))