Angela Merkel, the German chancellor, promised swift income tax cuts and a reform of corporate and inheritance tax on Monday but warned her Free Democratic partners in Germany’s next government not to expect a more radical shift towards free-market economic policies.
Speaking a day after voters gave her Christian Democratic Union and the smaller FDP a surprisingly comfortable majority in parliament, Ms Merkel said she would now push forward with the business-friendly tax policies she had not managed to implement as head of a grand coalition with her rival Social Democrats.
