This morning we have received questions.....>

GERMANY: This morning we have received questions re German solidarity surcharge

being scrapped by the Federal Government, due to headlines out of Germany.

- This is not a big surprise, has been discussed for some time (well before the

slowdown) and draft bill was circulated last week.

- However due to market sensitivity over potential German stimulus, it is

getting a fair bit of attention.

- Surcharge will continue to impact top earners, and some will only get cuts

over time (from 2021). From Sueddeutsche: "the levy for 90% of the previous

payer is to be deleted. Another 6.5% are to pay from 2021 only partially - the

higher the income, the more. The top earners - 3.5% of today's payers - should

continue to pay the full amount."

- Sueddeutsche/IFO suggest that tax cut impact likely under 0.2% of GDP in tax

cuts (i.e. under E10bln/annum from 2021, rising to E12bln by 2024).