Merkel Urges Tax Cuts to Boost German Economy
[CNBC] Chancellor Angela Merkel
...current chancellor of Germany. She was educated in East Germany when is was still run by commies, but in 1989 got involved with the growing democracy movement when the Berlin Wall fell. Merkel is sometimes referred to by Germans as
said on Tuesday Germany needs to stimulate domestic economic demand and urged opposition parties to stop blocking proposed tax cuts in the upper house of Parliament.
Merkel told business leaders Germany should end the automatic progression of workers into ever higher tax brackets due to inflation, which siphons more than 20 billion euros ($26 billion) out of the economy each year. She also renewed her calls for cuts in pension contributions as another way to boost purchasing power.
"Growth in Germany can at the moment be stimulated by an increase in domestic demand more than anything else," she said.
Germany has come under pressure to boost domestic demand to relieve pressure on the euro zone's struggling periphery during the sovereign debt crisis. Merkel has also encouraged German firms to give their employees higher wage increases this year.
Posted by: Fred