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12/19/09

German deficit set to reach record 85bn euros in 2010 as a result of new tax relief plans

BBC News - Germany passes tax relief package

Germany's upper house of parliament has approved Chancellor Merkel's tax relief plans aimed at helping the economy.

After a striking a deal late on Thursday, coalition partners agreed to the bill, which will cost the state about 8.5bn euros ($12.2bn; £7.5bn).

The BBC's Tristana Moore in Berlin said the plans, which will come into effect in January next year, were controversial given the country's widening budget deficit. The deficit is set to reach a record 85bn euros in 2010.


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