Merkel drops tax cuts after poll defeat

Article reports that the German government dropped tax cuts indefinitely from its agenda, May 2010, in response to the eurozone economic and financial crisis and a resounding defeat for the ruling coalition of Angela Merkel in a key state election on the 9 May 2010.

The German chancellor said her top priority would instead be cost-cutting in the budget, including drastic savings to meet Germany’s constitutional commitment to restrain its public sector debt.

ESO: Background information: Voters rebuke Merkel for Greek loan http://www.europeansources.info/record/voters-rebuke-merkel-for-greek-loan/

ESO: Background information: EU and IMF agree €720bn boost for rescue plan http://www.europeansources.info/record/eu-and-imf-agree-e720bn-boost-for-rescue-plan/

Deutsche Welle, 10.5.10: Chancellor Merkel faces tougher times http://www.dw-world.de/dw/article/0,,5559563,00.html

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