The debate over Germany’s fiscal policy is intensifying, with significant disagreement emerging between coalition partners regarding potential tax increases and strategies for budgetary consolidation. Reiner Haseloff, Minister-President of Saxony-Anhalt (CDU), has voiced strong opposition to raising taxes, asserting that Germany is not a low-tax country requiring such measures. He emphasized the need for the government to identify and implement savings, as outlined in the coalition agreement.
This position contrasts with statements made by Federal Finance Minister and SPD leader Lars Klingbeil, who, during a recent interview, left open the possibility of tax increases for high earners as a means of achieving greater social equity. The CDU/CSU has expressed strong resistance, citing a key pre-election promise not to raise taxes. However, SPD General Secretary Tim Klüssendorf has defended Klingbeil’s proposal.
Haseloff argues for a focus on expenditure control, suggesting potential savings within social welfare programs. He criticized the government’s current spending, referencing the 50 billion Euro allocation for citizen’s income and urging swift action to address budgetary shortfalls.
He further proposed revisiting and updating the Hartz IV system, implemented under former Chancellor Gerhard Schröder (SPD). Haseloff characterized Hartz IV as a successful and socially beneficial labor market reform, praising Schröder’s realistic understanding of individuals and advocating for a renewed emphasis on the principle of demanding participation while providing support.
