Huge tax cut for Germany

The German government has decided to take further steps towards reinvigorating its staggering economy. Chancellor Gerhard Schröder yesterday (29 June) announced plans to radically reduce income tax starting from next year.

It is hoped the reduction, worth 18 billion euro, will encourage German consumers to spend more and, as a result, boost Europe's biggest economy. "10 per cent less tax means 10% more consumption," Mr Schröder was quoted as saying by the BBC.

Berlin hopes to fi...