Editions:  Austria · Denmark · France · Germany · Italy · Norway · Spain · Sweden · Switzerland

Child benefit hikes in doubt as budget tightens

Share this article

Child benefit hikes in doubt as budget tightens
Photo: DPA
11:07 CEST+02:00
A quick rise in child benefits and tax exemptions is unlikely to go ahead because of growing concern within the incoming government of a budget blowout, a report said Saturday.

As the coalition negotiations between Angela Merkel's Christian Democratic Union and Guido Westerwelle's Free Democrats ground on, party leaders on both sides were backing away from the rises, Focus magazine reported.

It had been widely expected that the tax exemption on children would rise from the current €6024 to €8004. And the parties were also said to be negotiating on lifting the monthly child benefit or Kindergeld payment of €164 to €200 per child - a key election promise of the Free Democrats.

Instead, the tax exemption will only be brought into line with inflation by January 2010. Further quick increases were for the time being off the negotiating table, the report said, citing senior party sources.

Instead, the parties wanted to focus on lowering the tax rates for middle income earners.

The report comes amid signs the incoming government will have a much tighter budget to play with than previously thought.

Get notified about breaking news on The Local

Share this article

The Local is not responsible for content posted by users.
Become a Member or sign-in to leave a comment.

From our sponsors

Change the world with a master's degree from Sweden's Linköping University

Master's students at world-leading Linköping University (LiU) aren't there simply to study. They solve real-world problems alongside experts in fields that can create a better tomorrow. Do you have what it takes to join them?