For the last four weeks, Germany’s conservative parties—-the CDU (Christian Democratic Union), CSU (Christian Social Union) and the FDP (Free Democratic Party)-—have been negotiating...in order to form the new federal government. While all those involved agree on a right-wing program, they have been disputing how best to implement it without provoking a social explosion...
The new government under Angela Merkel (CDU) had planned to settle the government’s program last weekend...The wording of the coalition agreement was kept quite general and ornamented with numerous socially desirable decorations. Fixed procedures for executing the most devastating social cuts were devised, but these will only be implemented in one to two years, but then “imperatively” and “without alternative”— i.e., with full force.
The parties involved have thus negotiated an annual tax reduction of €20 to €25 billion, primarily benefiting the rich and corporate business... In this way, the FDP want to reduce the top rate of tax from the current 42 percent to 35 percent. In 1998, before Gerhard Schröder (SPD—Social Democratic Party) became head of government, it was set at 53 percent.
Corporations are also to be relieved of any tax burden. According to the draft coalition treaty, a tax reform for businesses will be implemented from the beginning of next year...On the other hand, state-owned municipal enterprises providing basic services for the public are to be taxed just as much as private companies. As a consequence of this “level playing field of competition,” exemption from value added tax, normally allowed to public sewerage and waste management businesses, will be repealed.
The new government intends exploiting social expenditure as its most important means of redistributing social wealth. Employers will be relieved of responsibility in this area, while the legally insured will pay more. The black-yellow (CDU/FDP) coalition is planning a radical cure for the health insurance crisis. It is canceling once and for all the principle of employers and employees each bearing half the cost of insurance contributions, and preparing the way for a two-class system of medical provision...
http://www.wsws.org/articles/2009/oct2009/germ-o26.shtmlThe ruling class agenda is global.