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Chancellor Angela Merkel is resisting calls from France and the UK to put more money in the EU stimulus package. (Photo: The Council of the European Union)

UK cuts VAT to jumpstart economy

The British government was set to announce a cut of 2.5 percent to its value-added tax on Monday (24 November) as part of a broader stimulus package aimed at jumpstarting the economy. Meanwhile, German Chancellor Angela Merkel was resisting calls for similar moves from her party over the weekend and is set to meet French President Nicolas Sarkozy about the EU rescue package to be unveiled on Wednesday.

The British VAT cut from 17.5 to 15 percent, the lowest rate allowed by EU law, was t...

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Chancellor Angela Merkel is resisting calls from France and the UK to put more money in the EU stimulus package. (Photo: The Council of the European Union)

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