After the election for the German federal parliament on September 27th 2009 three parties started negotiations to form a new government. Mrs. Merkels Christian Democratic Union (CDU), the Christian Social Union (CSU) and the Free Democratic Party (FDP).
[CDU and CSU are the so called Schwesterparteien (='sister parties'). Together they are the Union, CDU is a party in 15 of 16 German states (without Bavaria), CSU is a party only in Bavaria. In the federal parliament both parties are in one parliamentary group.]
In the campaign the FDP (and also the CSU) had promised a tax reduction. But there’s a problem to keep this promise. The problem is called economic crisis. The financial situation of the Federal Republic doesn’t allow a tax reduction during this crisis. It would ruin our state finances. But Mrs.Merkel didn’t want her partner from the FDP start in the new government as a liar. So what should they do? They found a trick. 50 billion € of new credits shouldn’t appear in the federal budget. They should be declarated as a ‘Sondervermoegen’ which means special funds. It’s tricky, isn’t it. But as I overlook the comments in the papers nearly no one was convinced by this trick. The parties that negotiate about the new government were struck by a wave of critique. And today there was the final shot for their plans. Experts from the government said that the special funds would violate our constitution.
What’s a way out? I think: forget tax reduction. That is a problem for the FDP. But that doesn’t matter. They promised a tax reduction before the election and could know that it couldn’t be paid. But they wanted votes and promised things some people wanted to hear. If they loose credibility by their irresponsible promises they receive their just deserts.