European leaders make frank statements
There is a certain confidence that there will be an up-turn far quicker than is being speculated – which we must agree will be a good thing for the tax system of all concerned.
Merkel has told businesses not to lay off those staff who are skilled because the economy in Germany will need them.
Britain’s Chancellor, Alistair Darling, will give a Pre-Budget Report on Monday that will outline a reduction in sales taxes but an increase in higher paid income tax.
BBC political editor Nick Robinson said the move would break a Labour pledge held ever since Tony Blair came to power in the 1997 election.
He said sources suggested that after the next election a new 45% rate could apply to incomes above £150,000 a year.