Germany's proposed tax rebate for skilled foreign workers 'socially explosive'

The German government has unveiled its long awaited preliminary budget plans, after months of political controversy which threatened to bring down German Chancellor Olaf Scholz's ruling coalition.

Inside Germany, one proposal drew more controversy than others, as Habeck's idea for tax relief for foreign skilled workers in order to close Germany's skills gap was criticised by a broad range of parties.

Habeck suggested the tax relief, which would offer skilled foreign workers a tax break of 30% dwindling to 10% after three years, would provide an incentive for skilled foreign workers to come to Germany.

The Economics Minister justified his proposal by saying that it was successfully in place in other countries such as Austria and the Netherlands and that: "If more skilled workers come to Germany because they want to work here or because they take advantage of these benefits, then we all win."

The idea however has been sharply criticised by other parties who say that it favours foreign nationals over German citizens.

The centre-right Christian Democratic Union's economic policy spokesperson Julia Kockner said that the proposal amounted to "discrimination against the country's residents."

CSU general secretary Martin Huber also criticised the plan, telling tabloid newspaper Bild that the "preferential tax treatment" was "scandalous".

The far-right Alternative for Germany party who have made tackling immigration and German nationalism central campaign messages called the idea "a slap in the face for hard working German workers".

The plan also drew criticism from the other end of the political spectrum, with The Left Party politician Susanne Ferschl saying of the policy that it gave foreign skilled workers preferential treatment over