Germans promised tax reforms

Germany's Social Democrats (SPD), who blocked a 30-billionmark ($16.9 billion) tax cut planned by Dr Helmut Kohl's government, yesterday pledged a tax reform of their own if successful in September's election.

Speaking before a strategy meeting in the eastern town of Goslar, the SPD chief Mr Oskar Lafontaine said the party would seek to implement a tax reform "which would bring back some justice" He gave no further details.

According to DeutschlandFunk radio, Mr Lafontaine later said the tax reform, together with a drive to reduce Germany's high statutory non-wage labour costs, would be part of an SPD drive to reduce the country's record unemployment levels.

The SPD justified their opposition to the government coalition's tax-cutting plan last year by saying it benefited the wealthiest at the cost of the poorest. Party officials said the still-open question of who should be the SPD's chancellor candidate for the election was not on the agenda. Mr Lafontaine said he had no comment on media reports at the weekend that the SPD parliamentary chairman, Mr Rudolf Scharping, seen as one of his supporters for the post, was now backing the Lower Saxony state premier, Mr Gerhard Schroeder.