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Tax cuts next year - Alliance

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10:45 CEST+02:00
The new government will lower taxes at the beginning of next year, according to Christian Democrat leader Göran Hägglund. Newly elected prime minister Fredrik Reinfeldt also revealed that his government will not ratify the draft EU constitution in its current form.

Svenska Dagbladet reports that the new government expects to have its first budget ready on October 16. Income tax rates will be lowered at the beginning of 2007.

"There will be a noticeable change in people's wallets", said Göran Hägglund. "Many of the things that we have agreed on can now be put into practice."

Another issue that came up in yesterday's government negotiations, according to Svenska Dagbladet, was the question of whether or not Sweden would ratify the draft EU constitution. While many EU countries have supported the document, the French and Dutch electorates voted against the new constitution.

Newly elected prime minister Fredrik Reinfeldt said that the government would not be prepared to ratify the constitution in its current form. "The fact that many countries have ratified will of course be part of the discussion but the process will also take into account that there have been 'no' votes in two countries."

TT/Paul O'Mahony

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