Financial Times FT.com

Germany debates fiscal stimulus

By Bertrand Benoit in Berlin

Published: February 7 2008 22:54 | Last updated: February 7 2008 22:54

The German government has rejected calls for a fiscal stimulus to cushion the impact of a US recession on Europe’s largest economy, yet the discussion is making headways in the domestic political debate.

On Wednesday, the Christian Social Union, Bavarian sister party to Angela Merkel’s Christian Democratic Union, broke ranks with the chancellor by calling for tax cuts as early as next year.

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