Germany to cut budget by 10 bln eur a year in austerity drive-FT

SINGAPORE, May 24 (BestGrowthStock) – 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 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 centre 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 said.

Investment
(Reporting by Jan Dahinten; Editing by Tomasz Janowski)

Germany to cut budget by 10 bln eur a year in austerity drive-FT