Germany plans major cuts in income tax

Germany plans wide ranging income tax cuts to stimulate Europe's largest economy Chancellor Gerhard Schroeder said at the weekend. Both the EC and ECB have warned against financing the tax cuts through more state debt.

German Chancellor Gerhard Schroeder said yesterday that his cabinet had approved sweeping income tax cuts to try to kickstart Europe's largest economy without busting European Union budget rules.

"We want a signal of revival to go out from this weekend to the people in our countr