BERLIN (Reuters) – Chancellor Angela Merkel’s ruling coalition is at odds over how to spend a record budget surplus, with her conservatives calling for corporate tax cuts while center-left Finance Minister Olaf Scholz is favoring more public investment. FILE PHOTO: German Chancellor Angela Merkel and Finance Minister Olaf Scholz attend the weekly cabinet meeting in Berlin, Germany, April 3, 2019. REUTERS/Fabrizio Bensch/File Photo Berlin faces pressure at home and abroad to inject more fiscal stimulus into Europe’s largest economy as a way to boost sluggish growth and with it also support economic activity in the wider euro zone. “What’s on the agenda in Germany now is that we’ll invest a lot,” Scholz said after the finance ministry published budget figures showing the federal government made a record surplus of 13.5 billion euros last year. The surprisingly good figures are mainly due to strong tax revenues, lower-than-expected interest payments and a slower-than-expected outflow of earmarked funds for infrastructure projects, the ministry said. This means that the government’s reserve now contains 48.2 billion euros ($53.61 billion), of which around two-thirds have already been earmarked for use while around 17.1 billion euros are still available for new projects. Scholz wants to use the… Read full this story
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