Akhir 02, 1432 H/March 7, 2011, SPA -- German Finance Minister Wolfgang Schaeuble held out the prospect of possible tax cuts over the next two years, in an interview Monday. However, any such "possible" cuts ahead of the 2013 election would be limited, and dependent on cutting net public borrowing, dpa quoted Schaeuble as saying. The small, pro-business party in Chancellor Angela Merkel's coalition, the Free Democrats (FDP), welcomed Schaeuble's comments as "long overdue." However, with three key regional elections this month, opposition parties denounced the move as election bait. "Within limits, I consider it possible," said the finance minister in an answer to the newspaper Stuttgarter Zeitung about a cut before Germany's next general election in autumn 2013, but added, "First and foremost we are concentrating on bringing down net public borrowing." The minister has shrugged off international calls for Germany to step up imports and help re-animate the US economy. Some critics have charged that his campaign against fiscal deficits will choke the world recovery if other European governments follow suit. Schaeuble warned that he would use any tax cuts to defuse opposition to changes he is planning in the German tax code, apparently ruling out across-the-board cuts. "The opportunity for fundamental tax code simplification is only there when we have the room for reductions at the same time," he said. A Schaeuble spokesman later resisted reporters' demands for a more explicit promise, saying the passage of time would show if there was room for cuts. Recently, the finance ministry had said there was none.
