German FDP Pushes for Tax Relief Amid Economic Strain

Germany's Free Democrats (FDP) support legislation to offset inflation's impact on taxpayers, following the collapse of Olaf Scholz's coalition. FDP leader Christian Lindner emphasized the need for untied tax relief. The move sets the stage for upcoming snap elections, with plans to increase child benefits also in discussion.

Germany's Free Democrats (FDP) have expressed support for legislation aimed at alleviating the inflationary burden on taxpayers. This comes after the collapse of Chancellor Olaf Scholz's coalition last month, according to a letter obtained by Reuters.

The FDP, which had advocated for taxation adjustments while still in government, argues against conditions that would add bureaucracy to tax relief. The party leaders conveyed these sentiments in a response to Scholz's request for help from the now-opposition FDP to pass the tax relief legislation.

Facing economic strain, Scholz dismissed then-finance minister Lindner in November, paving the way for snap elections. The tax relief bill is expected to pass in the Bundestag, alongside a proposal to increase child benefits. The coalition had initially planned a 5-euro monthly raise in benefits.

(With inputs from agencies.)