To counter the worst recession in 12years, German Chancellor Angela Merkel on Monday called for infrastructure investment and ruled out tax cut until after next year's national election in Stuttgart.
The German government will focus on investing in Germany's infrastructure to counter economic recession, including motorways or autobahns building and modernizing in the west part of the country, as well as extending fast internet connections to rural areas, Merkel said in a two-day convention of her Christian Democratic Union in Stuttgart.
Merkel also emphasized Germany will keep "all its options open "to fight against the impact of the global financial crisis. But she ruled out a structural overhaul of the current tax system, saying Germany will not join the "senseless competition" that many countries have done.
Merkel's position to postpone any tax overhaul until after the national election in September 2009 was supported by her party.
She received further support on Monday when she was re-elected party chairwoman with 94.8 percent of the ballots cast, an increase on the 93.1 percent backing she won in 2006.
Merkel wants to keep her tax gifts as promises for the election-- that's irresponsible and possibly even a grave mistake, from the view of industry representatives and some economists, according to the report of Bloomberg.
German Economy Minister Michael Glos also published an editorial on the ministry Web site on Monday, saying the earlier the reform of taxes, the better for growth and jobs.
The Social Democrats, Merkel's coalition partners and rivals at next year's election, also oppose tax cuts, arguing that the government should hold to its commitment to balance the federal budget, according to Bloomberg.
Source: Xinhua
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