FACTBOX - German political parties' main electoral pledges
Date: 19-Sep-02
Country: GERMANY
Some of the pledges have changed since Germany experienced serious floods last month.
SOCIAL DEMOCRATS
TAXES
- Would postpone by one year income tax cuts originally due to take effect on January 1, to pay for damage caused by floods.
Top rate to fall to 47 percent from 48.5 percent, then to 42 percent in 2005. Bottom rate to fall to 17 percent from 19.9 percent, then to 15 percent in 2005.
- Would increase corporate tax by 1.5 points to 26.5 percent for a year, a move backed by business.
- Would stick to further rise in fuel tax, dubbed "eco tax", on January 1, 2003.
BUDGET
- Maintaining pledge to European Union partners to reduce overall public sector deficit, including that of the 16 regional states, to around 0.5 percent of GDP by end-2004 on condition economy grows at least 2.5 percent in 2003 and 2004. Planning to balance federal budget by 2006.
- Against tampering with EU Stability and Growth Pact.
JOBS
- Proposing to reform labour market in line with recommendations of government-appointed experts. The panel under Volkswagen executive Peter Hartz recommended changing tax and benefit systems to make low-paid work more attractive as part of plan to cut dole queues by two million over three years. Plan also foresees state-owned development bank providing soft loans of up to 100,000 euros to companies for each unemployed person they employ. Threshold on earnings not subject to tax or social security payments to rise to 500 euros ($480) a month from 325. Earnings under 20,000 euros a year taxed at 10 percent.
EAST GERMANY
- Committed to helping firms and individuals affected by flooding.
- Committed to continued government aid for east Germany, including programme to create 100,000 new jobs for young people.
ENERGY
- Continuing to promote renewable energy such as wind and hydroelectric power alongside coal. Mineral coal production to continue getting subsidies until 2015 at least.
TRANSPORT
- Continuing to modernise railway and roads from interest on revenue from the sale of third generation mobile phone licences.
CONSERVATIVES (CDU/CSU)
TAXES
- Planning to cut top rate of tax to under 40 percent and bottom rate to under 15 percent by end of next parliamentary term in 2006, with a reform aimed at simplifying the system.
- Planning to maintain 2003 tax cut already legislated for by current government and not push up corporate tax; and to fund flood repairs out of part of Bundesbank profit in 2001.
- Timing of tax cuts uncertain. Shadow finance minister Friedrich Merz said the aim was to simplify the tax system by 2004 but this might not include changes to tax rates.
- Planning to re-introduce capital gains tax on companies' share disposals from 2004 at a low rate, such as 15 percent, or to extend similar tax breaks to smaller firms to ensure they are not put at a disadvantage.
- Planning to cancel the "eco tax" rise scheduled for 2003, but not yet to reverse four similar eco tax increases already implemented by the government. Also seeking to introduce EU-wide eco-tax in partnership with other EU countries.
- Planning to raise to 10 percent the threshold above which cross-company investments are liable to tax (cut to one percent by current government), to boost investment in start-ups.
BUDGET
- The conservatives say bringing total public sector deficit "close to balance" in 2004 is impossible, 2006 more realistic.
- Against tampering with EU Stability and Growth Pact.
- Planning to negotiate national stability pact with Germany's 16 regional governments.
JOBS
- Planning to reform Federal Labour Office along lines of proposals made by Hartz Commission.
- Medium-term goal of merging unemployment and social welfare benefits (allowing 16 federal states to experiment from January 1, 2003).
- Planning to raise threshold on earnings not subject to tax or social security payments to 400 euros a month from 325.
- Planning t
