BUSINESSWEEK ONLINE : MAY 1, 2000 ISSUE
INTERNATIONAL -- EUROPEAN COVER STORY Schroder's Agenda TAX CUTS Slash effective corporate-tax rate from as much as 60% to 38% in 2001 while eliminating many deductions. Cut top income-tax rate from 53% to 45% by 2005. Eliminate capital-gains tax corporations pay when selling shares in other companies, in 2001. DEFICIT REDUCTION Fiscal austerity program will reduce federal deficit from 1.5% of GDP in 1999 to 0.5% in 2003. PENSION REFORM Aims to tie increases in retirement benefits to inflation rather than to growth in average wages while tax cuts are phased in. May offer tax breaks for private pension plans. BUREAUCRACY Plans rollback of red tape that hinders startups. LABOR MARKET No plans to change labor laws that hinder companies from cutting staff in response to business conditions. DATA: Business Week, FINANCE MINISTRY _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _					RELATED ITEMS Gerhard Schroder: The Accidental Reformer (int'l edition) EUROPEAN COVER IMAGE: The Accidental Reformer TABLE: The Path to Reform TABLE: Schroder's Agenda ONLINE ORIGINAL: Hans Eichel: ``It's Not a Government of the Status Quo INTERACT E-Mail to Business Week Online

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