A percentage far higher at European level

"Do the full of gasoline before December 31 at midnight", "If you buy one of our models, we offer you the upcoming tax increase value added" (1): three days before the recovery of VAT, which will increase from 16 to 19, German consumers are asked all sides to prepare the most important increase in the tax introduced German in 1968.

This progression of 3 points will, indeed, represent an additional tax effort of 26 to 27 billion euros per year for the 82.4 million Germans. A non-negligible puncture which gave rise to no significant manifestation on the part of citizens, decidedly more docile than most of their European neighbours.

In November 2005, the Christian-Democrat-socialist coalition headed by Angela Merkel had not hidden the recovery of public finances was part of its priorities. It is true that the public deficit for the Germany, and this for several years, exceeded the 3 of gross domestic product allowed by the Treaty of Maastricht (4 in 2003, 3.7 in 2004 and still 3.2 in 2005). But helping the economic recovery, the public deficit should fall to 2.1 this year and 1.5 in 2007 and 2008. Which prompted many experts, throughout the year, to recommend a cessation pure and simple of the increase or at least reduced growth 2 maximum of the VAT. "In order not to disturb the growth found in the German economy and not to penalize still further disadvantaged households."

Angela Merkel and his Finance Minister, Peer Steinbrück, remained deaf to such arguments. The Chancellor reiterated more than once that two-thirds of the additional revenue (therefore nearly 18 billion euros) will be assigned to the recovery of public finances and that the last third (9 billion euros) will allow a decrease in employer contributions. A precision that poorly with passes of some elected officials from left with the impression that German taxpayers are deployed to finance the "gifts" to companies who register record profits.

Very shared advice

From next Monday, the reduced rate of 7 applied to almost all food products, in transit, to books, newspapers, etc. does not change. Rent and benefits of health to take these two examples, remain 16. However, the prescribed rate of all other products or services passes to 19. A percentage far higher at European level. But could have for consequences, according to some observers, to promote the black of decontrol of many products and services work and perhaps even to threaten the perceptible economic recovery over the past year.

On this last point, the opinions are very shared. But admittedly that person provides a breakdown of the growth of German GDP in 2007. The most pessimistic expect to a progression of at least 1.4 over the next 12 months. The IFW Institute provides for its part 2.1, versus 2.6 for the year 2006.

In short, the rally of the German economy was unlikely to be questioned by virtue of this tax screw Tower. Only really pessimistic forecast: the President of the Federation of retail (HDE), Holger Wenzel, who feared a wave of bankruptcies, retailers and SMEs where, as he says, "the cost of 3 will be divided equally between the buyer, the dealer and supplier".