Politics Will Go the Easy Way: Diw Ceo Expects Vat Increase

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How do the Union and SPD raise more than 130 billion euros for the state treasury from 2027? DIW President Marcel Fratzscher expects the coalition to make it easy – with a VAT increase. In another tax, the economist wants a significant increase.

n-tv.de

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Black and red must fill billion holes in the budget. DIW CEO Fratzscher believes that Union and SPD will choose the path of least resistance. The economist predicts an increase in VAT to 21 percent. Other options are better.

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DIW President Fratzscher expects VAT increase to 21 percent (Symbolic image - AI-generated) Marcel Fratzscher, President of the German Institute for Economic Research (DIW), expects the German government to raise the value-added tax (VAT) by two percentage points to 21 percent. The measure would generate 30 billion euros and thus close part of the budget deficit of over 130 billion euros for the years 2027 to 2029. However, Fratzscher warns of t…

berliner-sonntagsblatt.de

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According to Marcel Fratzscher, president of the German Institute for Economic Research (DIW), German citizens must prepare themselves for the fact that the center-right/center-left coalition will raise the value-added tax (VAT) by two percentage points to 21 percent to cover budget deficits. "Both parties have drawn their red lines and are apparently unwilling to abandon them," Fratzscher told the Redaktionsnetzwerk Deutschland (RND). "The CDU/…