Minister of Finance Yuriko Backes updated the Chamber about the budgetary situation on Monday and announced that she will put forward a tax-relief proposal to strengthen people's purchasing power.

According to a statement (FR) published by the Ministry of Finance on Monday, Minister Backes will propose targeted tax reliefs "to support household purchasing power". However, the proposed cuts will only be made if the forecast improvement of the budgetary situation occurs.

While updating the respective Chamber commission on Monday, the Finance Minister noted that although 2022 ended with a deficit, it will be €500 million less than what was estimated in October last year.

In the statement, Minister Backes comments: "I am pleased with this interim result recorded on 31 December 2022, which shows the resilience of our country's public finances. I will propose targeted tax reliefs in the form of tax credits, if the improvement from previous estimates is confirmed. This is in line with the commitment I made when I presented the budget for 2023."

Minister Backes concluded the statement by sharing her intention to use the entire margin to strengthen household purchasing power retroactively from the beginning of 2023.