German chancellor pledges tax cuts

The German chancellor has called for more public investment and tax cuts, as
she launched her manifesto for the government to be reelected in the September
general election.

‘The question is: How can we ensure Germany emerges stronger once the crisis
is over and the cards have been reshuffled in the world,’ Angela Merkel told
delegates in Berlin, reports the FT.

Her stance appears to contrast with her attempts to keep a tight rein on
finances when other European countries were heavily involved in bailouts
following the credit crunch.

Investing while cutting tax might be paid for with ‘money we don’t have’, she
added, with the only other alternative ‘to keep our hands in our laps’.

‘Of course, we will have to come back to a situation where we don’t spend
more than we earn. But in order to get there, we need to do two things: we must
invest in the future, that is education and the environment.’

Further reading:

the FT’s story

Banks put on notice over tax

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