CDU politicians call for VAT cut on basic foodstuffs

Dennis Radtke, head of the CDU workers' wing, has voiced support for cutting VAT on healthy basic foodstuffs. The statement responds to a proposal from the SPD parliamentary group amid debates on the Iran war's fallout. CDU's Sebastian Steineke also backs the measure.

Berlin. Dennis Radtke, chairman of the CDU workers' wing (CDA) and Member of the European Parliament, described a VAT cut on basic foodstuffs as "a conceivable form of relief." He told Handelsblatt: "A VAT reduction on basic foodstuffs I consider a conceivable form of relief." Radtke stressed the need for measures that help immediately.

Against the backdrop of debates on the Iran war's consequences, Radtke criticized the federal government for acting too slowly. "The government must now get out of talk-circle mode and act," he urged. Consumers are suffering from high prices with no end in sight.

Sebastian Steineke, consumer protection commissioner of the Union parliamentary group, called a reduction or abolition of VAT on basic foodstuffs "fundamentally worth considering." He referenced a similar idea from Union group leader Jens Spahn. Such steps would particularly relieve low-income consumers, as everyone depends on basic foods.

The SPD proposal is gaining support from CDU circles, adding momentum to the debate on relief measures.

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French PM Sébastien Lecornu warns Council of Ministers against demagogic fuel VAT cuts amid Middle East-driven oil price surge affecting workers.
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Sébastien Lecornu warns against demagogic VAT cut on fuels

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Prime Minister Sébastien Lecornu warned the Council of Ministers on Wednesday against measures on fuel VAT described as « as demagogic as they are useless ». This comes as oil prices rise over 5% due to the war in the Middle East, already affecting fishermen, farmers, and truckers. He also requested proposals to protect consumers from energy price volatility.

Federal Economics Minister Katherina Reiche (CDU) has rejected demands for an excess profits tax to address high fuel prices. She called measures like fuel vouchers misleading and proposed raising the commuter allowance instead. The price surges stem from the Iran war.

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The CDU economic council has proposed tax cuts and reductions in social benefits in its "Agenda for Workers," including removing dental coverage from health insurance. The plans face sharp criticism from politicians and associations, who label them unsocial and harmful to creating a two-tier medical system. Even within the CDU, there is discontent.

Coalition politicians in Germany are calling for a two-euro increase in tobacco tax per pack to reduce consumption and generate billions in revenue. The extra funds would be used to lower VAT on medicines. Compared to countries like the UK and Australia, Germany has been lenient with the cigarette industry so far.

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A debate is raging within Germany's Union party over a possible increase in the top tax rate as part of tax reform. While some representatives do not rule out a higher rate for top earners, others are clearly distancing themselves. The business community is annoyed by the discussions.

Saxony-Anhalt's Minister President Sven Schulze has insisted on the states' right to have a say in planned social reforms. He called for close coordination and special consideration of East German concerns. He made these statements in an interview with Germany's Editorial Network (RND).

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