EU austerity drive country by country

Discussion in 'Economics' started by ASusilovic, Sep 30, 2010.

  1. A new austerity drive has been sweeping across Europe, as governments struggle to trim huge budget deficits and the 16-nation eurozone races to reassure sceptical markets.

    Some of the biggest protests have been seen in France but industrial action is making headlines elsewhere too.

    With all EU governments aiming for maximum budget deficits of 3% of GDP by 2013, what belt-tightening measures are they taking?


    France has announced plans to cut spending by 45bn euros over the next three years in order to meet the budget deficit target.

    Some of this money is expected to be saved through closing tax loopholes and withdrawing temporary economic stimulus measures.

    The country also plans to save money through reforms to the pensions and tax systems. Measures include raising the retirement age to 62 from 60, and require employees to work longer to qualify for their state pension.

    The highest earners will also be required to pay an extra 1% income tax.

    Trade unions organised two rounds of nationwide strikes in September, with at least 1.1 million people involved in the first of these.


    The Spanish government has approved an austerity budget for 2011 which includes a tax rise for the rich and 8% spending cuts.

    Madrid has promised European counterparts to cut its deficit to 6% of its gross domestic product (GDP) next year, from 11.1% last year.

    Government workers face a pay cut of 5%, starting in June, and salaries will then be frozen for 2011.

    A tax rise of 1% will be applied to personal income above 120,000 euros.

    Smaller savings include an end to a 2,500-euro cash payout for new mothers, known as "baby cheques".

    Unemployment has more than doubled - to about 20% - since 2007.



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