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Merkel Ally Seehofer Rejects Tax Hikes in Sueddeutsche Zeitung Interview

Bavarian Prime Minister Horst Seehofer said his Christian Social Union, one of three parties in Chancellor Angela Merkel’s coalition, will block any attempt to raise taxes to rein in Germany’s budget deficit, the Sueddeutsche Zeitung newspaper reported.

The CSU, which is the Bavarian sister party to Merkel’s Christian Democrats, rejects proposals calling for an increase of the discounted value-added tax rate on items such as food, Seehofer told the newspaper. The party also opposes raising the VAT rate and suggestions to lift the income tax rate to help cut spending by around 10 billion euros ($12.3 billion) per year, he said, according to the newspaper.

To contact the reporter on this story: Rainer Buergin in Berlin at rbuergin1@bloomberg.net

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