BERLIN: Germany’s centre-left Social Democrats hope to reach a deal to raise taxes on the rich even though Chancellor Angela Merkel’s conservatives are opposed, an SPD leader said yesterday.
Merkel’s conservatives emerged from the September 22 election as the largest force but need a coalition partner. The SPD was at first reluctant to join Merkel in a reprise of the “grand coalition” that ruled from 2005-09 but coalition talks are now underway.
Andrea Nahles, deputy SPD leader and a likely minister in a new government, renewed the demand from the SPD’s left wing even after chairman Sigmar Gabriel said it was no longer essential to raise taxes as the SPD had pledged in its election campaign.
“A moderate tax increase for those few with very high incomes or great wealth would be an important contribution to improving the lives of many people,” Nahles told Spiegel Online.
The Christian Democrats (CDU), their Bavarian sister party the Christian Social Union (CSU) and the SPD are in month-long coalition talks. The CDU/CSU are opposed to any tax increases. The two camps have agreed on some issues but if all the plans were enacted, the federal government would need about ¤50bn per year in added revenues.
Reuters
