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POLITICS

Germans sceptical of tax cuts

Most German voters don’t think they will actually get a tax cut, despite promises by Chancellor Angela Merkel’s Christian Democrats, according to a new poll published in the latest issue of the weekly Wirtschaftswoche.

Germans sceptical of tax cuts
Photo: DPA

The union between Merkel’s Christian Democratic Union (CDU) and their Bavarian sister party, the Christian Social Union (CSU) announced their election-year tax cut plans on June 28. Details included dropping the rate for low-income earners from 14 to 12 percent and raising the threshold after which the top rate applies from €52,000 to €60,000.

National elections are scheduled for September 27.

But voters are not convinced by the Chancellor’s promises, 52 percent of those asked said they thought the government’s large budget deficits would make tax cuts impossible.

Contrary to Merkel’s promise, 64 percent of the respondents to the Allensbach Institute’s poll said they thought their taxes would rise next year.

Just 25 percent of Germans thought tax rates would stay where they currently are and only four percent thought taxes would fall.

Finance Minister Peer Steinbrück, who is from the rival Social Democratic Party that currently governs in an uncomfortable coalition with the CDU, criticised the CDU’s tax promises in an interview with public broadcaster Deutschlandradio Kultur Saturday.

Steinbrück said it was astounding that the same party which recently helped pass a balanced budget amendment, which will prevent states and the federal government from taking on new debt, could “simultaneously make grandiose promises to the country for tax cuts worth tens of billions.”

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UKRAINE

German economy minister makes unexpected visit to Ukraine

German Vice Chancellor and Economy Minister Robert Habeck unexpectedly arrived in Kyiv on Thursday to discuss post-war reconstruction and show support after Russian attacks on key Ukrainian infrastructure.

German economy minister makes unexpected visit to Ukraine

“This visit comes at a time when Ukraine needs all the support it can get in its fight for freedom,” Habeck told reporters in the Ukrainian capital.

“And it is a fight for freedom, that’s the important thing that the world, Europe and Germany mustn’t forget,” he said, adding that Ukraine was “fighting for the values that define Europe”.

The trip comes after Germany at the weekend announced it was sending an additional Patriot air defence system to Ukraine after pleas from Kyiv for its Western backer to urgently help foil Russian attacks.

Ukraine has said it is running out of weaponry to shoot down Russian missiles and drones as Moscow ramps up attacks on energy infrastructure.

German Chancellor Olaf Scholz on Wednesday urged fellow EU leaders to urgently follow Berlin’s lead and send more air defence systems to Ukraine.

Habeck, who was accompanied by a business delegation on the trip, will hold talks with President Volodymyr Zelensky.

He will also meet with Ukrainian officials to discuss emergency aid and business ties as well as preparations for the annual Ukraine Recovery Conference to be held in Berlin in June, the German economy ministry said in a statement.

“Comprehensive support for Ukraine also includes support for a resilient energy supply and reconstruction. Private sector investment is crucial for this to succeed,” Habeck was quoted as saying in the statement.

The World Bank has estimated the total cost of reconstruction facing Ukraine more than two years since the start of the war is at least $486 billion.

OPINION: Germany’s timid strategy risks both Ukraine’s defeat and more war in Europe

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