Stricter Tax Rules Within the EU Expected by Year-End, Says German Finance Minister

German Finance Minister Christian Lindner, following a finance ministers’ summit in Luxembourg, has expressed the belief that it should be feasible to introduce more rigorous tax regulations within the European Union by the end of the year. Since 2020, budgetary regulations for EU member states have been temporarily suspended due to the COVID-19 pandemic. The plan is to reinstate these regulations in 2024, albeit with certain adjustments. Under the previous rules, member states were allowed a maximum budget deficit of 3 percent relative to their gross domestic product (GDP). Additionally, a member state’s debt could amount to a maximum of 60 percent of its GDP. Presently, there is discontent within the EU regarding member states treating these limits merely as guidelines and tailoring their budgets to hover around these standards. Consequently, the German Finance Minister is advocating for the formulation of stricter regulations. Lindner stated, “For Germany, it is evident that a credible, long-term reduction in debt can only be achieved if annual deficits are taken into account and reduced as well.” As a result, Germany is proposing that member states be mandated to reduce 1 percent of their debt annually. Nevertheless, France vehemently opposes this proposition, asserting that any [...]

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