CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Germany's CDU Business Wing Criticizes Coalition Agreement

Germany's CDU Business Wing Criticizes Coalition Agreement

by Ulrika Lomas, Tax-News.com, Brussels

02 December 2013


Highlighting the "light and shade" in the new Grand Coalition agreement with the Social Democrats (SPD), the business wing of German Chancellor Angela Merkel's Christian Democratic Union (CDU) has lamented the lack of tax relief provided for in the text, and warned that certain measures contained in the package will actually serve to increase the tax burden in Germany in the long term.

While highlighting the fact that it is "a great success" that the CDU and SPD have pledged not to raise taxes or to increase new debt in Germany within the framework of their accord, the CDU business wing nevertheless insisted that the provisions are simply insufficient to maintain and to improve Germany's competitiveness.

The Grand Coalition's decision to allow workers to retire at 63 without penalty from July 1, 2014, provided that they have contributed to the pension system for 45 years, is a "completely false signal," the business groups maintained. Providing fiscal incentives for employees to enter retirement early is "counterproductive" and will merely serve to dramatically increase pension contribution rates in the medium-term, they explained.

Finally, the business wing criticized the fact that that the text does not introduce vital tax relief measures to give a much-needed boost to growth, for example by improving fiscal depreciation and alleviating the problem of fiscal drift in the country's income tax system. The fact that Germany's coalition partners are not prepared to improve the fiscal framework conditions for increased growth and employment is a "huge mistake," the business wing ended.

TAGS: tax | business | employees | retirement | corporation tax | tax rates | Germany | tax breaks | individual income tax

To see today's news, click here.

 















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »