Merkel rules out VAT rise

Angela Merkel, the German Chancellor, has categorically ruled out an increase in value added tax in spite of rocketing public deficits, should she return to power for a second term after the September 2009 general election.

Speaking ahead of a conference of her Christian Democratic Union in Berlin on the 29 June 2009 that will endorse the party’s manifesto, Ms Merkel sought to silence political allies and economists who had recently called for tax increases to plug the hole blown in the public coffers by the economic crisis.

Deutsche Welle repports that by promising tax cuts in their campaign program for the September 2009 elections, German conservatives hope to restore their popular leader Angela Merkel to power, but also to ditch their Social Democratic coalition partners.

Spiegel Online International, 29.6.09: Merkel's Tax Cut Pledge is 'Hollow, Wrong, Implausible' http://www.spiegel.de/international/germany/0,1518,633193,00.html

Deutsche Welle, 29.6.09: Merkel makes tax cuts into her pitch for re-election http://www.dw-world.de/dw/article/0,,4442256,00.html

Deutsche Welle, 28.6.09: German conservatives settle on tax cuts as key campaign issue http://www.dw-world.de/dw/article/0,,4439349,00.html

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