German Opposition Leader Slams Tax Hikes

by Ulrika Lomas, Tax-News.com, Brussels

07 February 2003

Writing in the Financial Times on Wednesday, the leader of the Opposition Christian Social Union party, which alongside the Christian Democrats now has a strong majority in Germany's upper house, condemned the 50 tax measures enacted by the German government since September, and pledged to keep the pressure on Chancellor Gerhard Schroeder to improve the country's economy.

'The economic figures could not be worse for the ruling coalition,' Edmund Stoiber wrote, continuing: 'Unemployment has surged to 4.6 million on a non-seasonally adjusted basis, a five year high. Germany's public sector deficit is the highest in the European Union. The government's only political innovation has been an attempt to raise 50 new taxes.'

He went on to add that: 'The Christian Democrat/Christian Social Union opposition now has a strong majority in the Bundesrat, Germany's upper house. The federal government needs the support of the CDU/CSU for most of its legislation to be passed. Angela Merkel, the CDU leader, and I have no intention of paralysing the federal government. We are ready to play a constructive role and will act responsibly for our country. But we are also prepared to keep the Schroeder government under pressure in order to accomplish the necessary reforms.'

The CSU's electoral programme was entitled 'Three times forty', and was based upon the premise that the tax burden for individuals and companies should fall below 40%, that social charges must not exceed 40% of total labour costs, and that tax and spending should account for less than 40% of GDP.

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