Tags: Germany | Cut 13 | Billion

Germany to Cut $13 Billion a Year Under 'Debt Guillotine'

Monday, 24 May 2010 07:57 AM

The German government is to cut its budget by 10 billion euros ($13 billion) a year until 2016 in order to set an example for the euro zone and to comply with the "debt guillotine" budget deficit rules in the constitution, the Financial Times reported on Monday.

Citing unidentified government officials, the FT reported that the cuts could be achieved through tax increases as well as reduced spending, despite a promise by the coalition government to put tax cuts at the heart of the plan.

The government would mainly target lower subsidies for Germany's federal states as well as abolish tax exemptions and allowances, the newspaper reported.

Wolfgang Schäuble, finance minister, suggested that reforms of unemployment and social benefits could provide some of the savings if they helped to fuel employment rates, the FT reported.

His proposal was condemned by the center-left opposition Social Democrats as an attack on the poor. Sigmar Gabriel, SPD leader, called for tax rises on the bankers and speculators who had caused the crisis, the report said.

© 2017 Thomson/Reuters. All rights reserved.

 
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The German government is to cut its budget by 10 billion euros ($13 billion) a year until 2016 in order to set an example for the euro zone and to comply with the debt guillotine budget deficit rules in the constitution, the Financial Times reported on Monday. Citing...
Germany,Cut 13,Billion
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2010-57-24
Monday, 24 May 2010 07:57 AM
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