German retail giant Metro has welcomed a proposed German tax shake-up, but said it hopes the government will bring in more 'fundamental reforms'.
The ruling coalition and opposition parties reached a compromise deal over tax cuts after months of debate, which concluded on Monday.
The government hopes the cuts will boost consumer spending and stimulate the ailing German economy. But, at EUR7.8 billion (£5.5 billion) a year over the next two years, the cuts amount to only half the sum planned by Chancellor Gerhard Schroeder originally.
'We hope it will go further,' said a spokesman for Metro, which relies on German consumers for more than half of its sales, which are over EUR50 billion (£35.2 billion). He added: 'It is the first step in the right direction and we're looking now for fundamental change.'
Germany's economy has struggled to adjust to the union between East and West Germany for more than ten years. Metro reacted to the poor environment by expanding beyond Germany and now operates in 28 countries.
The spokesman said he hoped the reforms would provide consumers with a clearer view of the year ahead and encourage spending.
Reform, part of Schroeder's Agenda 2010, is also designed to transform labour and welfare laws.
Opposition has come from those who believe the proposals threaten workers' rights, or place too great a strain on the treasury. Germany's budget deficit already exceeds the 3 per cent of GDP laid down under eurozone rules.
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