New German coalition plans tax cuts

New German coalition plans tax cuts

Germany's Christian Democrats (CDU) and the Free Democrats (FDP) have agreed to form a coalition government, pledging to cut taxes, reform the health-care system, and pull all remaining US nuclear weapons from the country.

Angela Merkel, the CDU leader who will start her second term as chancellor, said on Saturday that the new centre-right cabinet was Germany's "answer to the [economic] crisis".

"We will focus on growth and tax relief," she said in a joint news conference with the FDP leader on Saturday.

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