Positions on key issues between Germany's two leading parties ahead of coalition talks
The two parties said Tuesday they will hold talks later this week about forming a government but would have to overcome significant differences to seal a left-right "grand coalition."
TAXES:
_ Christian Democratic leader Angela Merkel wants to cut top and bottom income tax rates from 15 to 12 percent and 42 percent to 39 percent. She would cut Germany's high non-wage labor costs by raising value-added tax in order to cut the payroll tax for unemployment insurance.
_ Chancellor Gerhard Schroeder's Social Democrats oppose an increase in VAT, and want to raise the top income tax rate by 3 percentage points on incomes of Euro 250,000 (US$305,650) a year or more.
LABOR MARKET:
_ The conservatives want to ease rules on hiring and firing staff and make it easier for companies and workers to opt out of industrywide wage deals between employers and labor unions.
_ The Social Democrats want to preserve current rules in the labor market. They also want to impose a minimum wage should industry organizations and labor unions fail to agree on minimum pay levels among themselves.
FOREIGN POLICY:
_ The Christian Democrats oppose Turkey's membership in the European Union, arguing they should instead be extended financial and trade advantages under a vaguely defined "privileged partnership." They plan to "reinvigorate the trans-Atlantic cooperation with the United States."
Within the EU they have pledged to take more account of the concerns of small EU countries.
_ The Social Democrats support Turkey's EU membership bid, arguing that bringing in the overwhelmingly Muslim country would enhance Europe's security. They also want to maintain a policy of positioning Germany as "a middle-sized power for peace." That stance meant opposing the U.S.-led war in Iraq.
_ Both parties rule out sending troops to Iraq.
No comments:
Post a Comment