Government plots course to curb budget deficit

The caretaker government of Prime Jan Fischer is putting the finishing touches to plans aimed at curbing the country’s ballooning budget deficit. The so-called exit strategy includes the possibility of a higher 25% tax bracket for bigger earners, ending aid for home buyers and changes to index-linked increases in social payments. The target is to almost halve the current state deficit to under 3.0 percent of Gross Domestic Product by 2013. That is the level need for adoption of the euro. Prime Minister Fischer has said the measures, to be discussed next week with industrial leaders and unions, could plot the course for the next government following May elections.

Author: Chris Johnstone