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FT.com / Europe - Merkel spells out €80bn spending cuts
The German government spelt out plans on Monday to cut public spending by no less than €80bn over the next four years, and cut at least 15,000 jobs in the state sector, in a drastic plan to cut its debt and deficit spending.

Angela Merkel, the chancellor, set out the plans after two days of intensive negotiations within the ruling coalition, rejecting proposals to increase income taxes in favour of more drastic cuts in expenditure. But higher taxation will hit the financial sector, including a future financial transaction tax, as well as air travel and the nuclear energy industry, in a deliberate emphasis on the environment.

The most important part of the savings are intended to come from a further reform of social security and the labour market, with measures to reduce payments for the long-term unemployed in a bid to get able workers back into jobs.

The measures also include an "ecological tax" on air travel, a tax on fuel elements for the nuclear energy industry and the introduction of a financial transaction tax, in addition to a bank levy, from 2013.

"Ce qui vient au monde pour ne rien troubler ne mérite ni égards ni patience." René Char
by Melanchthon on Mon Jun 7th, 2010 at 12:09:59 PM EST

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