• Germany's news in English

FDP tax revolt threatens Merkel's budget

The Local · 7 Jul 2011, 08:01

Published: 07 Jul 2011 08:01 GMT+02:00

Facebook Twitter Google+ reddit

After Merkel’s cabinet signed off on the 2012 budget on Wednesday, members of the Free Democratic Party (FDP) told daily Bild's Thursday edition that they may block progress of the budget deliberations, holding up spending plans for next year.

FDP finance expert Jürgen Koppelin told the paper: “The FDP will link decisions about the federal budget to tax cuts. Without the green light for tax relief for low and middle income-earners, agreement from the liberals (the FDP) on the budget will be difficult.”

FDP Bundestag member Frank Schäffler warned that Merkel’s Christian Democratic Union (CDU) and their Bavarian sister party the Christian Social Union “must be clear: one only works with the other.”

Merkel’s conservatives, notably Finance Minister Wolfgang Schäuble, generally feel there is little wriggle-room for tax cuts and that the more pressing issue is balancing the budget.

On Wednesday, Merkel’s cabinet approved a budget that includes income tax relief, the main goal of which is to reduce so-called “cold progression” whereby rising incomes push people gradually into higher tax brackets, increasing their overall burden. The details were not released, however.

The approval included that of FDP leader and Economy Minister Philipp Rösler. But tax cuts are a totemic issue for the FDP and many of its MPs are thought to fear for their jobs unless the party can push through more tax relief.

Story continues below…

The budget will also cut Germany’s borrowing next year by about €4 billion to €27.2 billion in an effort to meet Schäuble’s goal of reducing the deficit and Germany’s federal debt.

The Local/djw

The Local (news@thelocal.de)

Facebook Twitter Google+ reddit

Your comments about this article

Today's headlines
Germans think they're fit, but they're really couch potatoes
Photo: DPA.

There's been an increase in the number of Germans who define themselves as "fit", but their lifestyle choices don't quite match this self-perception.

10 fascinating facts you never knew about German beer
Tennis coach Boris Becker and his wife Lilly at Oktoberfest 2016 in Munich. Photo: DPA

From malt and monks to Radlers and rivalries, the story of German beer is as rich and wonderful as its selection.

Intensive farming 'endangers a third of German species'
Photo: DPA

There are 32,000 species of animal, plant and mushroom life native to Germany. Due to intensive farming methods, one in every three of these is endangered, a new report shows.

German hospital uses therapy to 'treat' paedophiles
A poster from the campaigne "Don't offend", which offers therapy to paedophiles. The sign reads "Do you love kids more than you'd prefer? There's help." Photo: DB Scholz & Friends / DPA.

A unique German initiative is offering therapy to paedophiles to control their urges, with the aim of getting them help before they offend.

Minister: 'no tolerance' for clowns after chainsaw attack
Photo: DPA

Interior Minister Thomas de Maizière has called for a zero-tolerance approach to 'killer clowns' after a series of attacks culminating in two teenagers being chased by a clown wielding a chainsaw.

Baby who was auctioned on eBay taken away from father
Photo: DPA.

A German court ruled on Thursday that a man who put his one-month-old baby up for sale on the online auction platform eBay should only be allowed contact with the child under supervision.

Portugal's ruling party calls German minister 'pyromaniac'
Finance Minister Wolfgang Schäuble. Photo: DPA.

The head of Portugal's ruling Socialists called German Finance Minister Wolfgang Schäuble a "pyromaniac" on Thursday after he criticized Lisbon for reversing course on austerity.

These are Germany's top ten universities
The new library of Freiburg University. Photo: Jörgens.mi / Wikimedia Commons

These are the best universities in all of Germany - at least according to one ranking.

Introducing Swabians - 'the Scots of Germany'
Photo: DPA

These Southern Germans have quite a reputation in the rest of the country.

Woman sues dentist over job rejection for headscarf
Photo: DPA

A dentist in Stuttgart is being taken to court by a woman whom he rejected for a job as his assistant on the basis that she wears a Muslim headscarf.

10 German clichés that foreigners get very wrong
Sponsored Article
Last chance to vote absentee in the US elections
10 ways German completely messes up your English
Germany's 10 most weird and wonderful landmarks
10 things you never knew about socialist East Germany
How Germans fell in love with America's favourite squash
How I ditched London for Berlin and became a published author
12 clever German idioms that'll make you sound like a pro
23 fascinating facts you never knew about Berlin
9 unmissable events to check out in Germany this October
10 things you never knew about German reunification
10 things you're sure to notice after an Oktoberfest visit
Germany's 10 most Instagram-able places
15 pics that prove Germany is absolutely enchanting in autumn
10 German films you have to watch before you die
6 things about Munich that’ll stay with you forever
10 pieces of German slang you'll never learn in class
Ouch! Naked swimmer hospitalized after angler hooks his penis
Six reasons why Berlin is now known as 'the failed city'
15 tell-tale signs you’ll never quite master German
7 American habits that make Germans very, very uncomfortable
Story of a fugitive cow who outwitted police for weeks before capture
jobs available
Toytown Germany
Germany's English-speaking crowd