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GERMANY: Finance Minister Kukies Says Tax Relief Plans Not Possible in 2024

GERMANY
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German finance minster Kukies was interviewed by Die Welt and noted that plans to pass a bill countering inflation-induced tax creep (which initially was to be passed under the now-collapsed traffic light coalition) will not be possible in 2024.

  • Kukies says this is due to time constraints and the door for passing remains open ahead of the election on 23 February.
  • However, a passing of any tax creep relief before then appears unlikely after the CDU opposition leader appeared to withdraw support for the measures last weekend.
  • Additionally, "the decision has been made as to the basis on which the Federal Ministry of Finance will implement the provisional budget for 2025. ‘We will largely base our spending on the government draft for 2025 from the summer,’ said Kukies. However, the government draft only forms the basis for calculation and does not release the government from the decision as to which expenditure may be incurred in accordance with the Basic Law."
  • Note that the irrespective of when the provisional budget is confirmed, the DFA is expected to announce Germany's issuance plans on Tuesday 17 December.
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German finance minster Kukies was interviewed by Die Welt and noted that plans to pass a bill countering inflation-induced tax creep (which initially was to be passed under the now-collapsed traffic light coalition) will not be possible in 2024.

  • Kukies says this is due to time constraints and the door for passing remains open ahead of the election on 23 February.
  • However, a passing of any tax creep relief before then appears unlikely after the CDU opposition leader appeared to withdraw support for the measures last weekend.
  • Additionally, "the decision has been made as to the basis on which the Federal Ministry of Finance will implement the provisional budget for 2025. ‘We will largely base our spending on the government draft for 2025 from the summer,’ said Kukies. However, the government draft only forms the basis for calculation and does not release the government from the decision as to which expenditure may be incurred in accordance with the Basic Law."
  • Note that the irrespective of when the provisional budget is confirmed, the DFA is expected to announce Germany's issuance plans on Tuesday 17 December.