Germany’s Waigel Wants Tax Cuts in Stages

German Finance Minister Theo Waigel said he wants to cut taxes and the surcharge for reunification in stages because the country can’t afford to do both at once. Waigel also confirmed that the 1996 federal deficit will be about $46.5 billion. As Germany works to meet the strict criteria for the European Economic and Monetary Union, the country can’t afford to offer 30 billion marks in tax relief and give up 30 billion marks from the surcharge at the same time, Waigel said in an interview with the German N-TV television station. Waigel’s comments backed similar statements Friday by Wolfgang Schaeuble, the Christian Democratic Union’s parliamentary chairman. Both oppose demands by the CDU’s junior coalition government partners, the Free Democrats, to remove the so-called solidarity tax by 2000.