Wednesday, December 8

German coalition parties can count on windfall tax revenues

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BERLIN — The three parties working to form Germany’s next governing coalition can count on windfall tax revenues to fund some of their election promises such as higher public investments in climate protection, official estimates showed on Thursday.

The federal government expects its tax revenues for 2021 to 2025 to come in 71.7 billion euros above previous projections as the recovery from the pandemic and overall inflation effects are pushing up tax receipts, according to a document compiled by finance ministry officials and other tax experts.

For all state levels, including state governments as well as municipalities, tax revenues from 2021 to 2025 are seen 179 billion euros higher than projected in May.

Outgoing Finance Minister and Chancellor-in-waiting Olaf Scholz will comment on the additional fiscal space and how his center-left Social Democrats, the pro-spending Greens and the fiscally more hawkish Free Democrats want to spend the extra money during a news conference this afternoon. (Reporting by Michael Nienaber,)

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