The CDU’s social policy wing expressed scepticism over the black‑red coalition’s proposal to raise the value‑added tax. “An increase in VAT would already be a big chunk” said Dennis Radtke, chairman of the Christian Democratic Employees Union of Germany (CDA), in an interview with the “Tagespiegel” Wednesday edition. “You can’t simply sweep something like that away from a social‑policy perspective”.
Radtke added that if the tax hike could be paired with a significant reduction in the indirect cost of labour, it might still result in a reasonable package overall. “That would only work if, at the end of the day, the calculations benefit both the workers and the firms” he stressed.
He praised discussions within the CDU/CSU union and the SPD that would lower the reduced VAT rate on food even further. “It’s right to focus on food prices” Radtke said. “When energy and transport costs remain high, they push up the prices of butter, bread and many other daily necessities. That impact is uneven – it hits most sharply those who already have no room to maneuver”.