(GermanPolicy.com) – German Chancellor Scholz (SPD) has rejected a change in budgetary policy with reference to the coalition agreement. This comes after Federal Economics Minister Habeck (Greens) and Federal Finance Minister Lindner (FDP) had taken different positions. Budgetary policy, tax policy, and social projects are addressed in the agreement, as well as a modernization of the national economy, Scholz pointed out. An understanding about policy must be reached on this basis, said Scholz in the ZDF program ‘Maybrit Illner’. It is not surprising if there are “a few noises” within the coalition of three “when you work so much,” Scholz added.

SPD: a budget as agreed upon

The SPD in the German Bundestag had referred to the coalition agreement. That “continues to form the basis for us for further budget preparation,” the budget spokesman for the SPD parliamentary group, Rohde, had said, according to a media report. However, one must “of course ensure” that the “financing of the current challenges” is guaranteed. In March, the SPD wants to set the cornerstones for the budget deliberations.

FDP for free trade with the USA and a tax reform

The parliamentary group of the FDP had called for a transatlantic free trade agreement after a billion-dollar investment program in the United States had been announced to reduce inflation. However, the Liberals also call for a major reform of corporate taxes in Germany. One should neither isolate oneself nor start a “subsidy race,” according to a position paper. In addition to a free trade agreement, the FDP is committed to improving local conditions for German companies.

According to the FDP faction, “a revenue-neutral adjustment of the tax structure” must be considered in order to “significantly” reduce the overall burden on German firms – by reducing the corporate tax rate, for example. This could be counter-financed by an increase in indirect taxes, such as mineral oil tax, by fewer VAT exemptions and fewer tax reductions.

The President of the Association of the Automotive Industry, Müller, had also spoken out in favor of a free trade agreement with the USA, for improvements in local conditions, and against more subsidies.

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