Germany wants more loose tax rules to meet the challenge of defense of Europe – Politico

During a meeting of EU ambassadors on Wednesday, the German delegation argued that if the commission’s decision was a first positive step, it would not be enough to respond to the new realities of the safety position of Europe in the medium and long term, And that changes to the budgetary rules would be necessary, said three EU diplomats informed of the talks in Politico.

Diplomats, like other cities in this story, have received anonymity to freely speak of meetings.

The irony of the situation is striking: for years, Germany Brussels’s most powerful tax falcon,, Request a strict budgetary discipline through the block.

When governments have launched the possibility of an exemption for defense investments when the original tax rules were being negotiated, the former German Minister of Finance Christian Lindner was one of the most ferocious opponents, countries such as Poland and Italy that support him strongly.

But now, faced with growing security problems and the transmission of geopolitical realities, it is Berlin who leads the charge for more flexibility.

The full force of the outside became obvious Tuesday when the CDU central -right and the central -left SPD – the two main parties which should lead Germany after the elections of last month – concluded a benchmark to stimulate defense investments by reforming the controversial debt brake of Germany. The restriction expressed by the Constitution has prevented the greatest economy in Europe from using budgetary generosity to strengthen its internal demand for almost fifteen years.