The U.K.’s vote to leave the European Union has so far had no effect on the German economy, German Finance Minister Wolfgang Schäuble said Wednesday, adding “we’ll see if that remains the case.”
However, Schäuble said he was concerned about British Chancellor George Osborne’s post-Brexit announcement that he plans to slash corporation tax in a bid to attract business to the U.K., AFP reported.
Schäuble said he did not want a “race to the bottom” when it comes to tax rates.
Osborne “made the announcement and I hope he’ll elaborate” on it, said the german minister, adding that although he is not opposed to fiscal competition, it has to be “fair.”
Presenting his 2017 budget, Schäuble said Germany’s public finances would be in the black for the third year in a row, with plans to keep its budget balanced or in surplus until at least 2020.