The government has more interest in pursuing the global power ambitions of the Standort Deutschland rather than accomplishing environmental goals, even in spite of one of the parties being named Die Grünen (which is basically just good PR for them and nothing of substance) - and the goals that are being pursued anyway are all to the slogan of Cem Özdemir “Zwischen Wirtschaft und Umwelt gehört kein oder”. Environmentalism as long as it remains profitable, even at costs of +2, +2,5, +3 or more °C
The next elections are sure to be won by Merz, with or without the AfD, and very likely to have the FDP in influential ministries, so nothing will change - or perhaps even for the worse.
That’s what happens when the main goal of production is not the goal of creating socially necessary goods, but to insert money into the labor process and end up with more than you had at the beginning.
Raising the interest rate (i.e. making loans more expensive) is the measure taken if there is a belief that there is too much demand for goods by the population (Keynesian inflation theory) or too much money in circulation (Monetarist inflation theory). It’s taken in the hope that reducing the purchasing power of the population will slow the price increase down with falling demand. Which is why you had mainstream economists talking of say the need to increase unemployment (i.e. take people’s incomes away) and how wage increases are bad due to the supposed theory of the wage-price spiral.
Wage-Price spiral
Cutting taxes is a measure taken with the hope that with reduced costs, private enterprises will scale up production and increase the amount of goods’ supply as compared to demand, lowering or at least stopping the increase in prices, as orthodox economists hold the thesis that excessive demand (as supposedly caused by the 2020 Covid Crisis) is responsible for the currently high inflation.
Nowadays, it’s commonly accepted in many studies, such as this recent one from New Zealand that a significant cause in the inflation is the desire for even higher profits compared to what they already had in years prior.
Lowering taxes in response to a stagnant economy in this case is, as I understand it, unlikely to affect inflation, but is rewarding a private sector that used the fuel and energy price crisis caused by the war in Ukraine to enrich itself even as those prices fell again, with more riches. Especially considering the currently stagnant economy, it’s placing hope on a sector that has already failed to deliver out of an ideological belief that the state is unable to do what the private sector can, as well as the support it gets from and how many politicians have personal relationships with the private sector.