08 June 2010 19:46 [Source: ICIS news]
TORONTO (ICIS news)--?xml:namespace>
Frankfurt-based chemical industry trade group VCI said in a first reaction that it saw the need for "rigorous saving".
However, the government needed to make sure it did not take measures that slowed down growth and tax revenues, the group said.
VCI said it welcomed the government's exemption of education and research from the cuts.
But it was highly critical of plans to reduce producers’ breaks on energy taxes, it said.
Also, the tax breaks had been tied to targets for industry to reduce its greenhouse gas emissions, VCI said.
VCI represents about 1,650 Germany-based chemical firms, employing over 416,000 workers.
Instead, the union called for higher marginal taxes for high-income earners and higher taxes on capital gains, among other measures.
It said it welcomed, however, the government’s plan to impose a levy on banking and financial transactions.
Commentators noted that the government's measures would reduce social security spending and unemployment benefits, while there would be no reductions in pensions and no increases in income tax.
The planned tax on financial transactions would depend on whether Merkel could get support for it at the upcoming G20 summit in
Also on Tuesday,
Industrial orders rose 2.8% in April from March, after a revised 5.1% increase in March from February, the ministry said.
The ministry expected continued recovery and improvement in industrial production in coming months, it said.
Dow employs a staff of 6,000 in Germany, its second largest market after the
According to VCI’s projections,
($1 = €0.84)
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