Financial Times FT.com

Merkel poised to pass tax test

By Bertrand Benoit in Berlin

Published: December 9 2009 00:32 | Last updated: December 9 2009 00:32

Angela Merkel’s new government looks set to pass the biggest test to its unity so far with the likely adoption next week of a €8.5bn ($12.5bn) package of tax cuts by the parliamentary upper house.

The move would come as a relief to the chancellor, after officials admitted on Tuesday that her coalition of Christian Democrats and Free Democrats had made an “inelegant” start since taking office in October. The coalition has spent its first six weeks bickering over issues from tax cuts to looming health insurance reform.

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