BERLIN (MNI) – Germany’s upper house of parliament, the Bundesrat
representing the 16 states, on Friday adopted a bill that implements
several of the government’s budget consolidation measures decided in
June.

The lower house, the Bundestag, already passed the bill last month.

The mix of spending cuts, higher fees and some tax hikes is to
shrink the federal deficit by E2.803 billion in 2011, E4.641 billion in
2012, E5.491 billion in 2013 and E4.616 billion in 2014.

The bill foresees, for example, the introduction of an air traffic
tax, the lowering of energy tax exemptions for businesses, as well as
lower subsidies for families and the long-term unemployed.

–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com

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