One of the main focuses of the policies contained within the agreement on both a European and national level is achieving “fairness”. This has already led to some recent changes in fiscal policy, for example through the introduction of licensing limits to combat unfair tax competition, and will continue to do so through the objectives listed in the coalition agreement. This particularly concerns the international fight against tax dumping, tax fraud, tax avoidance and money laundering. The draft agreement states that the government’s “financial flexibility” should be used to create policies that are responsible and socially balanced. With regard to the taxation of individual persons in particular, certain measures are intended to provide relief for those on low incomes and to strengthen the family unit. As well as the aspects discussed below, fiscal changes are expected to impact other areas covered in the draft coalition agreement within the upcoming legislative period. This includes the field of digitalisation (e.g. by reducing bureaucracy and through eGovernment) and in providing support for start-ups through financial incentives to mobilise venture capital.
Cornerstones of grand coalition’s fiscal policy
These areas will play a particularly important role: