October 14, 2019, 21:03


‘Fat Years Are Over’: Finance Minister Gives Grim Prophecy for Germany

‘Fat Years Are Over’: Finance Minister Gives Grim Prophecy for Germany

Although Germany has enjoyed a budget surplus along with steady economic growth for several years already, the country’s government is bracing itself for a downturn in the face of increasing uncertainty over the Brexit deal, trade frictions and the need for growing spending on the military.

German Finance Minister Olaf Scholz, representing the Social Democrats in Angela Merkel’s government, has predicted in an interview with Bild that the time of Germany enjoying unforeseen additional tax revenue is coming to an end.

“The beautiful time, in which the state takes more and more taxes than it expected, is coming to an end”, he pointed out, saying that although a tax surplus is expected for 2018, “now the fat years are over”.

In this situation, he spoke out against tax cuts or more public investments, implying that the current tendency hardly leaves the government room for this. He brought this argument up as he spoke about a recent proposition by all the major political parties about completely abolishing the solidarity surcharge, also called “Soli”, by 2021. The tax, introduced in 1991 and used to fund development in the former East German states, is calculated in accordance with the size of the basic income tax.

READ MORE: Euro is Too Weak For German Economy, Too Strong For Most Others in Euro — MP

He pointed out that the Christian Democratic Union had agreed with the Social Democrats during coalition talks that citizens with a “very high income should continue to pay the soli”. Scholz demanded relieving people with low and middle incomes from the tax, instead, promising to submit a corresponding draft this year, as had earlier been agreed upon. If these income groups receive the tax relief, then the country’s budget will receive 10 billion euros less, or roughly half of the annual revenue received from the solidarity surcharge.

Germany has enjoyed a budget surplus since 2014, when the Finance Ministry was steered by Scholz’s predecessor, the CDU’s Wolfgang Schäuble, while Europe’s largest economy has been growing for the last 9 years. Amid growing trade tensions with the US, uncertainty over the Brexit deal between the UK and the EU, as well as the German defence minister’s call for better financing, growth is expected to weaken in 2019, Reuters reports

Related posts

Leave a Reply

Your email address will not be published. Required fields are marked *

Weather

Moscow

Today10/14/2019
10℃

Tue
10/15/2019
light rain

  • light rain
  • HI/LO: 10/3
  • Clouds: 97%
  • Wind: 5.34 m/s
  • Wind Direction:
  • Pressure: 1017hPa
  • Humidity: 78%

Wed
10/16/2019
sky is clear

  • sky is clear
  • HI/LO: 7/1
  • Clouds: 3%
  • Wind: 3.78 m/s
  • Wind Direction: SSE
  • Pressure: 1027hPa
  • Humidity: 66%

Thu
10/17/2019
light rain

  • light rain
  • HI/LO: 14/7
  • Clouds: 100%
  • Wind: 5.48 m/s
  • Wind Direction: SW
  • Pressure: 1013hPa
  • Humidity: 84%

Fri
10/18/2019
broken clouds

  • broken clouds
  • HI/LO: 6/3
  • Clouds: 53%
  • Wind: 3 m/s
  • Wind Direction: ENE
  • Pressure: 1024hPa
  • Humidity: 70%

Sat
10/19/2019
broken clouds

  • broken clouds
  • HI/LO: 7/3
  • Clouds: 66%
  • Wind: 3.21 m/s
  • Wind Direction: S
  • Pressure: 1026hPa
  • Humidity: 73%

Sun
10/20/2019
few clouds

  • few clouds
  • HI/LO: 10/5
  • Clouds: 14%
  • Wind: 3.35 m/s
  • Wind Direction: SSW
  • Pressure: 1027hPa
  • Humidity: 70%

NEWS

    Сторонняя реклама



    Статьи
    Статьи В
    Создание Сайта Кемерово, Создание Дизайна, продвижение Кемерово, Умный дом Кемерово, Спутниковые телефоны Кемерово - Партнёры
    Яндекс.Метрика