Bloomberg Anywhere Remote Login Bloomberg Terminal Demo Request


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

Bloomberg Customers

Businessweek Archives


International Outlook: GLOBAL WRAPUP


Chancellor Helmut Kohl never told voters to read his lips. But his decision to hike taxes steeply, reneging on a campaign pledge, could cost him politically. On Feb. 26, Kohl announced $30 billion in personal and corporate income taxes designed to narrow the $100 billion budget deficit caused by the high cost of German unification.

Business is warning that Kohl's 7.5% corporate tax surcharge will crimp investment and economic growth just as the rest of Europe slides into recession and eastern Germany's economy is virtually imploding. And labor unions are threatening higher wage demands to recoup the extra bite out of income.The tax hike comes just as Kohl is facing criticism on other fronts. His image as a bold statesman, earned by his handling of German unification, is under fire as he seems increasingly unable to make it work. He's also blamed for ducking tough ways to cut the deficit, such as slashing subsidies to industries and regions. With that, observers say, Kohl has brought the "wimp factor" to German politics.EDITED BY JOHN PEARSON

blog comments powered by Disqus