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Controversy in the coalition: Merkel sees no chance for large corporate tax reform

2019-11-28T18:26:24.603Z


Chancellor Angela Merkel (CDU) has dampened the hopes of the economy for a comprehensive corporate tax reform. The coalition partner stands in the way of the project.



Chancellor Angela Merkel (CDU) currently sees no chance for a major reform of corporate taxes. Reason is the resistance of the coalition partner SPD. The Union has not yet managed to open the doors for this "wide-open", Merkel said at an event of the German Chamber of Commerce and Industry in Berlin.

There are opportunities for equal treatment of partnerships and corporations. But she does not see the opportunity for a "really big corporate tax reform," Merkel said. The Union will continue to fight for it. The Chancellor pointed to cuts in corporate taxes in the US or France.

Finance Minister Olaf Scholz had only recently rejected demands for lower corporate taxes. An international tax-cutting competition must be avoided, said the SPD politician. Otherwise there would be a danger that the state would no longer be able to fulfill its tasks.

Merkel also advocated lowering electricity prices. Even if this is ambitious, the EEG levy to promote green electricity should be reduced to zero in the long term.

A reform of corporate taxes and low electricity prices have long been demands of the economy, not least because of the weaker economy. DIHK President Eric Schweitzer said that despite the current headwinds, there are still opportunities for the companies: "But that will only work if we gain new ground in innovation and technology and do not become too expensive."

Source: spiegel

All business articles on 2019-11-28

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