German Finance Minister Christian Lindner unveiled tax relief for at least 30 billion euros ($34.1 billion) to individuals and companies during 2023 in his latest comments to the Bild am Sonntag newspaper, per Reuters.
The diplomat also said, per Reuters, that the 2022 budget was put together by the previous government under Chancellor Angela Merkel. “Draft for 2023 will include relief such as on pension insurance contributions, and the end of an electricity price surcharge,” adds German Finance Minister Lindner.
Key quotes
We have to go back to sound public finances. We have a responsibility towards the younger generation.
Due to the pandemic, Chancellor Olaf Scholz's ruling coalition agreed to use an emergency clause in the constitution for the third year in a row in 2022 to suspend debt limits and enable new borrowing of 100 billion euros.
FX implications
Although the off in multiple Asia-Pacific markets on Monday restricts reaction to the news, hopes of tax relief can favor EUR/USD bulls to extend the late 2021 rebound.
Read: EUR/USD Price Analysis: Bulls need validation from 1.1385
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