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When it comes to plans to boost Europe's economy, "France is working on it, Germany is thinking about it," says Mr Sarkozy (l). (Photo: The Council of the European Union)

France and Germany not to follow Britain in cutting VAT

Cuts to value-added tax as a response to the financial crisis and a means to boost the economy are not appropriate for Germany or France, German Chancellor Angela Merkel and French President Nicolas Sarkozy said on Monday (24 November) in Paris.

"A general cut in VAT is the response chosen by some countries but is not the right answer for France and Germany," Ms Merkel was reported as saying by French news agency AFP.

She said France and Germany would hold more talks on how to pro...

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When it comes to plans to boost Europe's economy, "France is working on it, Germany is thinking about it," says Mr Sarkozy (l). (Photo: The Council of the European Union)

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