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Key issues in Germany's election

Sunday, September 27, 2009

A glance at key issues in Germany's parliamentary election Sunday:

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FOREIGN POLICY:

_ All except the Left Party broadly support Germany's military mission in Afghanistan, but want to see enough progress in training Afghan police and soldiers in the next few years that an exit strategy becomes possible. Steinmeier has advocated laying the foundations by 2013 for a withdrawal, but has not said when he thinks a pullout might begin; Merkel's stance is similar, and she says it makes sense to exert pressure for progress on Kabul. The Left Party advocates an immediate withdrawal.

_ Merkel's conservatives say Turkey should have a vaguely defined "privileged partnership" with the European Union rather than full membership — a longstanding position that has played no role in this campaign. The Free Democrats say there is no prospect of a final decision on Turkey's membership in the next few years, and that it depends on Ankara implementing reforms and on the EU's capacity to absorb new members. The Social Democrats and Greens are clearly supportive of Turkish membership.

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LABOR:

_ The conservatives and Free Democrats oppose introducing an overall national minimum wage, which they maintain would destroy jobs.

_ The Social Democrats and Greens advocate a national minimum wage of euro7.50 per hour. The Left Party wants a euro10 minimum wage.

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TAXES:

_ Chancellor Angela Merkel's Christian Democrats want middle-income tax relief in an effort to spur economic growth. They propose cutting the lowest income tax rate gradually to 12 from 14 percent. They also want to raise the threshold at which the highest rate — 45 percent — kicks in to euro60,000 ($88,000) per year from euro52,552.

They have set no date for the proposed cuts but their Bavaria-only sister, the Christian Social Union, wants to see them implemented in 2011 and 2012.

_ The conservatives' preferred coalition partners, the Free Democrats, want a more radical overhaul of the tax system, under which the bottom income tax would drop to 10 percent and the top rate to 35 percent.

_ Challenger Frank-Walter Steinmeier's Social Democrats say that, because the economic crisis has pushed up government debt, there is no room for broad tax relief. They want to cut the lowest income tax rate to 10 percent but increase the top rate to 47 percent.

_ The opposition Greens want to help cover the costs of overcoming the crisis by imposing a special, though unspecified, one-time tax on Germany's richest people. The Left Party wants to raise the top income tax rate to 53 percent and impose a "millionaires' tax" on the very rich.

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ENERGY:

_ Merkel's conservatives want to halt a plan to shut down Germany's 17 nuclear power plants by 2021 and extend the lives of some plants until more energy from renewable sources is available. However, they do not want to build new nuclear plants. The Free Democrats share this position.

_ The Social Democrats are fiercely defending the existing nuclear shutdown schedule — as are the Greens, who were their partners in the center-left government that drew up the plan. The Left Party goes further, advocating an immediate shutdown. The Social Democrats advocate new coal-fired power plants, which the Greens and Left Party reject.

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