UPDATE 1 — Germany's Merz vows electricity tax cut for all consumers to close 'credibility gap'

(Adds finance minister's caution in fourth bullet point) BERLIN, Oct 12 (Reuters) — German Chancellor Friedrich Merz vowed on Monday to lower an electricity tax for all consumers to the EU minimum, following a meeting of his conservatives on how to address voters' concerns after losing ground to the far right in recent state elections. The cut had initially been planned for last year but was abandoned due to a lack of budgetary leeway. "Our aim is not only to provide relief but also to close the credibility gap that arose for all of us as a result of that decision last year," said Merz. He said the budget leeway exists if recent optimistic economic growth projections hold, which could lead to roughly €5 billion ($5.6 billion) in additional federal tax revenue - precisely the amount needed to lower the tax. At a separate press conference on fiscal policies, Finance Minister Lars Klingbeil, however, was cautious about the move's longer-term viability. "We are pleased about the return of economic growth but I can't confirm the assumption that this could permanently fund the electricity tax cut," said Klingbeil. The electricity tax was introduced in 1999 as part of Germany's ecological