ECB's Gonzalez-Paramo promotes lower taxes

In a speech on Friday 13 May European Central Bank board member Jose Manuel Gonzalez-Paramo said lower income taxes can reduce the need for interest rate rises in the long run.

'Over the longer term and as a key ingredient of a broader set of supply-side policies such as those embodied in the EUs Lisbon agenda, tax reforms could have a bearing on monetary policy,' Gonzalez-Paramo said in the speech.

He said a reduction in marginal income tax rates would boost employment and reduce inflation

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