The German Chancellor Friedrich Merz closed the door to any tax on Sunday, despite a budget deficit that is being expanded and calls to the social -democratic partner with more tax revenues.
Neither he nor the leader of the Bavarian Allied Party (CSU), Markus Söder, “would have signed a contract that includes new fiscal positions,” hit the conservative leader. This position occurs after that within the coalition in Berlin, the Minister of Finance and Vice Chancellor, Lars Klingbeil, of the Social Democratic Party (SPD), suggested that high -income tax increases could be necessary to fill a budget defect estimated at 30 billion euros from 2027.
“Other views”
“That the SPD has other points of view” about the fiscal question is “as legitimate as the fact that we have our own positions on other issues,” added Friedrich Merz, who at the same time denied a “shock” within the coalition. Markus Söder went further by declaring the tax cuts recently, saying that Germany’s economic competitiveness required the relief of charges.
Friedrich Merz wants to relive the German economy, which has been supporting since 2023, and for that the country “must work more and more,” he said. The German Chancellor has mentioned an excessive number of days of absence due to illness, stagnant productivity and the highest work costs in Europe, which weigh on the competitiveness of the country.
At the moment, the large coalition in Berlin has been granted in tax cuts, for an amount of more than 45 billion euros between 2025 and 2029, destined to stimulate the investment of companies.
Source: BFM TV
