Deutsche Bank economist marks the “biggest change in tax regime since the reunification of Germany”
The debt reduction expense and renovation package between the CDU of Friedrich Merz, the Scholz SPD and with the endorsement of the Greens was approved in a “historical” vote on Tuesday at Bundestag.
In the outgoing parliament, while Merz last the formation of a government coalition with the SPD after winning the February elections, 513 deputies voted in favor, above the 489 needed for the majority of two thirds, and 207 voted against.
The reform of the constitutional brake to the debt now goes to vote at Bundesrat, already scheduled for Friday.
The next Bundestag will mean that next week, on March 25, at 11:00 am (minus one hour in mainland Portugal).
Deutsche Bank talks about the “biggest change of tax regime since the reunification of Germany”
Quoted by Guardian, Robin Winkler, German chief economist at Deutsche Bank Research, says the Fiscal Reform that the German Federal Parliament (Bundestag) has just approved corresponds to the “biggest change in tax regime since Germany’s gathering.”
“After a lot of hesitation in the last two weeks, Germany’s outgoing parliament has decided today to reform the constitutional debt ceiling,” says Winkler, adding that, in the opinion of German economists, “this is a historical change in the fiscal regime, no doubt the largest since German reunification.”
“However, as in reunification, a fiscal expansion does not guarantee success: the next government will have to fulfill structural reforms to transform this fiscal package into sustainable growth.”
AFD leader weaves furious criticisms of the change of tax regime approved in Germany
A visibly furious Alice Weidel criticized approval by the German Limic Parliament of changes to the country’s debt regime that opens the way to a multimillioning package for defense and infrastructure expenses.
After voting at Bundestag, following an agreement between CDU and SPD and the Green’s Apd, the collyder of the Alternative to Germany (AFD), a party of extreme anti-Europe, pro-kremlin and anti-immigration, spoke in a “historical day” in which Germany decided to contract a “gigantic debt” that will weigh about future generations, particularly young people.
The “losers” of the elections continue Weidel, in a reference to the SPD and the green, are “launching rockets” because “now they can spend more money on their programs like never when they were in government,” thanks to legislation that comes to relieve boundaries to indebtedness.
As for the election winner Friedrich Merz and a probable future German chancellor, Weidel said he “broke all his electoral promises” after “made a campaign based on conservative political changes” that immediately “fired edge out on the election night.”
“This is nothing less than electoral fraud, worse than anything else we have ever seen in the history of the Federal Republic of Germany,” said AFD leader.
Flated by one of the party’s partners, Tino Chrupalla, Alice Weidel argued that the approved legislation will be ruinous to Germany’s reputation as a stable economy and will destabilize the entire eurozone, classifying it as “the fatal bullet” to the single currency, which “will lose its value spectacularly in the coming years.”
This, in turn, will “burst on the faces” of the ordinary Germans, he said, refusing to answer any question from journalists.
