July 17, 2000

During the last federal elections in Germany the Social Democrats and Greens made major gains and took control of the government. Oskar Lafontaine, leader of the Social Democrats was appointed finance minister. Lafontaine proposed an economic agenda that wasnt pro-free market. Not surprisingly, the markets didnt approve of his policies and the German market under-performed. Political pressure mounted and disagreement over the course of economic policy culminated with Lafontaines resignation. Since the resignation the Greens have argued that, to attract capital, Germany must reduce its corporate tax rate.

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