Bavaria's Christian Social Union (CSU) opened a two-day party congress in Nuremberg Friday locked in a tax dispute with its Christian Democratic Union (CDU) ally two months ahead of elections in Germany's largest state, according to dpa. CSU Chairman Erwin Huber predicted the party, which has held power in the southern state since 1959, would hang on to the overall majority it has maintained since 1962, despite signs the party is losing ground. Describing the CSU as a values-based party, Huber said it was the only party in a position to continue Bavaria's successful course. The CSU has backed reversing a cut in the tax allowance granted commuters, while the CDU, headed by Chancellor Angela Merkel, is insisting on awaiting a Constitutional Court ruling on the issue. Speaking as guest to the congress, Merkel said this was the only point of difference between the two parties, which have been in electoral alliance at federal level since 1950. Both agreed on the need for tax cuts to put more pay in workers' pockets and stimulate the economy. Tax cuts could not be made through living beyond the country's means, the chancellor warned, however.
