Speaking to the German parliament hours before the summit, Ms Merkel said:“Measures, especially of a fiscal nature, which have been regularly discussed and which at the end of the day will prevent the moves necessary to adapt to a changing market, should, from our point of view, be avoided.”
Mr Reinfeldt said he was considering income tax cuts aimed at giving Swedes an incentive to work longer hours, earn more money and increase their ability to afford high energy costs.
“An increase in petrol prices could be met by working extra hours. It’s a tough signal”, he acknowledged. He said some countries, including Sweden, could help by boosting food output and productivity. “We still give support to farmers not to use land. Nearly everyone 150 years ago was working on farms and we were all starving. Now, 2 or 3 per cent are on farms and we are exporting food. Raising production and productivity would do a lot,” he said.
FT.com today, bold meu
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