According to a report from Reuters, the German Economic Ministry has recently been analyzing a possible reduction in the country’s 19% VAT rate, as part of a larger analysis of German trade surpluses. A ministry spokesperson did not deny the report, but stated that a VAT reduction would have a minimal effect on existing surpluses, and that increasing investment in Germany should be a higher priority. Germany has faced criticism from the United States government over its trade policy; any VAT reform, however, is unlikely to occur prior to the German national elections in September.
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