The German Federal Minister for Economic Cooperation and Development, Reem Alabali-Radovan, is facing a significant budget reduction of one billion euros over the coming years and is advocating for the introduction of a wealth tax to offset the shortfall.
Responding to inquiries from Politico magazine, Minister Alabali-Radovan reaffirmed her support for a wealth tax, stating a need to “hold assets more accountable”. She emphasized the importance of ensuring responsibility surrounding significant wealth.
The Minister intends to champion this proposal within the governing coalition, acknowledging differing perspectives currently exist. She stressed that increased funding for development cooperation is essential and that relying solely on public funds is insufficient. Finding new solutions collaboratively will be crucial.
In the interim, Minister Alabali-Radovan is actively seeking potential areas for cost-cutting measures within her ministry’s existing operations. She described the necessary reductions as “tough” and acknowledged the challenges involved in identifying and implementing them.