Are you sure?

German govt has no plans to cut taxes any further until late 2009

The German government will not cut taxes any further during the current four-year legislative term which ends late-2009, a government spokesman said.

Speaking at a regular weekly news conference, Ulrich Wilhelm said the government's top priority is consolidating the budget and Chancellor Angela Merkel sees no reason to divert from this goal. Wilhelm was reacting to comments made by Economy Minister Michael Glos who said in an interview over the weekend that he intends to propose corporate and personal income tax cuts given the continuing recovery of the local economy. Wilhelm said Glos' comments are within the framework of the known political stance of the Christian Democrats CDU/CSU parties and he would not comment on any possible decisions of future governments in Germany. Glos is a CSU member.

The current German government is made up of a coalition between the Social Democrats SDP Party and the CDU/CSU. A spokesman for the Finance Ministry, whose head Peer Steinbrueck is a member of the SPD Party, said at the same news conference that the budget is weighed by debts totaling €1.5 trillion and the interest payments on these have prevented the state from making further investments. (abcmoney.co.uk)