June 7, 2013 / 8:51 AM / in 5 years

Merkel says "clear no" to tax hikes in German campaign

BERLIN, June 7 (Reuters) - German Chancellor Angela Merkel said on Friday her response to opposition proposals for tax increases during the campaign for September’s election was “a clear no” as business could easily move to other lower-tax countries in Europe.

“I say a clear no to tax rises,” Merkel told a meeting of German family-owned firms in Berlin, arguing that it was now easier than at any time in the last three decades for companies to move between European Union countries to avoid high taxes.

Germany’s centre-left Social Democrats and Greens say they would increase taxes on the wealthy if they managed to prevent Merkel from getting a third term in the September vote.

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