The German government will reduce budget spending by 10 billion euros annually until 2016 in order to become an example for the eurozone and comply with budget deficit regulations, the Financial Times reported on Monday.
Citing unnamed government officials, FT reports that the reductions could be achieved through tax increases and cuts in spending, despite the coalition government’s pre-election promise to lower taxes. The government will also seek to reduce subsidies for German federal states and will consider abolishing tax exemptions and reliefs, the esteemed London daily reported. (H)
