Union and spd negotiate on finances

Union and spd negotiate on finances

Acting federal finance minister wolfgang schauble (CDU), who is heading the working group together with hamburg’s mayor olaf scholz (SPD), wants no new debt and a clear renunciation of tax increases.

In the exploratory talks, the SPD had signaled that it could refrain from imposing higher taxes on top earners – if the CDU/CSU came up with proposals on how, for example, investments in education and infrastructure could be financed differently.

"The union’s pledge that there will be no tax increases definitely applies," schauble told "focus" magazine. "For us as a union, not taking on any more debt is the core of a stable fiscal policy."Nevertheless, the medium-term financial plan until 2017 leaves some room for maneuver.

Schauble wants to mitigate cold progression in income tax. "I have already fought for this in the past and I think it is necessary."Union faction leader volker kauder (CDU) told "welt am sonntag" that this would be discussed in the coalition negotiations. "To what extent this is actionable remains to be seen."

Social security contributions of more than 40 percent are unacceptable to the union, kauder told "welt am sonntag". CDU and CSU are "ready for a small increase in the nursing care contribution," but there will be "no increase in the pension contribution – no matter what new benefits are being discussed".

Following the expansion of the bundestag presidium by two vice-presidents, which was criticized by the opposition, the union and the SPD are also considering a consolidation of the federal cabinet, according to the "welt am sonntag" newspaper. The social democrats are calling for seven to eight ministries, arguing that the FDP got five ministries in 2009 with a weaker result.

Union faction leader kauder told the "wams": "i can’t say yet whether the black-red cabinet will be rougher than the black-yellow one." At the moment it does not look like it. The cabinet is not determined by the strength of the parliamentary groups in the bundestag, "but by the necessity of the tasks".

SPD leader sigmar gabriel rejected the report on facebook: "so far, we have not talked about the allocation of ministries or even concrete names"."

According to "spiegel", plans to leave the finance ministry to the union are taking shape in the SPD leadership. But SPD leader gabriel is willing to pay a high price for the renunciation – among other things, "with the claim to a seventh portfolio". His personal interest is in a new energy department that is to be created, writes the "spiegel".

Criticism came from the greens. "A rough coalition must not lead to the federal cabinet being artificially inflated," party leader simone peter told the "welt" newspaper (monday). "Departmental allocations must be decided primarily on the basis of factual issues and must not primarily serve to satisfy the SPD and the union."

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