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...term labor contracts are phased out. The budget deficit is expected to pass 6% of GDP in 2010, thanks mostly to a dip in tax revenues. Some economists say the center-right government will be penned in. "There's no room for maneuver on tax cuts," says Professor Henrik Enderlein, from Berlin's Hertie School of Governance. "On the contrary, Merkel's new center-right government is likely to raise taxes, like VAT, in order to get Germany's public finances out of the red." (See pictures of the dangers of printing money in Germany...

Author: /time Magazine | Title: Fight over Tax Cuts Looms for Merkel | 9/29/2009 | See Source »

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