Germany's Tax Income Is Still Rising Despite Cooling Growth

Merkel SmilingREUTERS/Tobias SchwarzGerman chancellor Angela Merkel.

Berlin faces cooling growth prospects at home and pressure from abroad to increase spending.

Monday’s monthly Finance Ministry report showed the government’s September tax income up 4.7 per cent compared with a year earlier, at 57.3 billion euros ($US73.1 billion). For the first nine months, the tax take rose 3 per cent to 428.9 billion euros.

The figures come ahead of a meeting Monday between the German and French finance and economy ministers. Paris, under pressure to trim its budget deficit, advocates increased German investment.

German officials appear determined to keep a promise to halt new borrowing next year for the first time since 1969. They acknowledge more investment is needed but don’t want to finance it by borrowing.

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