A meeting between government coalition leaders on Monday failed to produce
conclusive results on how the government will offset falling tax revenues.
But two variants, narrowed down, are on the table: to introduce new
spending cuts at most government ministries as well as in some social
benefits to bring the public finance deficit down to 3.5 percent of GDP in
2012. Or, alternatively, to raise the VAT to a uniform 19 percent (with
minimal exemptions on books, medicines, newspapers & magazines).