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Isabelle Cole

Brazil sees tax breaks on household goods easing inflation | Reuters - 0 views

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    At the moment globally there has been a spike in food prices. One of the causes has been the severe droughts in the United states which have driven up the food prices. In response to this inflation the government of Brazil decided to reduce taxes on basic household goods to support an economic recovery. This action also leads to stabler prices, which is one of the macro-economic goals of a country. The tax break on household goods allows for a increase in consumption as consumers will feel wealthier and have an increase in purchasing power. As a result this will increase Brazil's GDP to a certain extent as Consumption is one of the factors that influence the gross national product. 
Nils Armin van Willigenburg

Luxembourg's Juncker Defends 2013 Budget - 0 views

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    Luxembourg's Prime Minister Jean-Claude Junker is defending the newly released budget bill, in place for 2013. The bill set in place plans to invest more money into the consolidation package, in place to consolidate Luxembourg's budget. A 1.8% increase in government spending, in relation to the budget set in 2012, is put forth to remove any divergence from the country's stability and growth. Juncker stressed that although the recent financial crisis which has caused a recession in Luxembourg over the past 4 years, the bill will insure that Luxembourg's deficit will be lower in 2013 than 2009. Juncker says that in 2013, Luxembourg's deficit will be at 4.3%.  Juncker says the reason Luxembourg has come into deficit is the investment of 200 million Euros into Luxembourg's employment fund. Furthermore, the increase of unemployment isn't beneficial to the countries current financial situation.  He does not plan to raise VAT, as some countries in the EU such as the Netherlands have recently done to fill part of their deficit. This would only harm economic recovery and affect the country's low-income earners.  Juncker's ultimate goal is to make Luxembourg debt free by 2014. The minister promised that the government would try their very best to achieve this goal, while still being aware that the economic development of Luxembourg remains "extremely fragile".
Isabelle Cole

UPDATE 2-Brazil unveils measures to spur consumption, investment | Reuters - 0 views

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    This article describes how the Brazilian government tries to increase investment and consumption through tax cuts. In particular on trucks, machinery, and automobiles the government reduces or gives an extension on the taxes. Another measure to stimulate investment in the country is via reducing its interest rate to an all-time low of 7.5 %. 
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