Montage: Sveriges Radio/Scanpix.
tough discussions ahead?

Christian Democrats choose pensioners over VAT cuts

The Christian Democrats would rather cut taxes for pensioners than lower the sales tax for restaurants, according to TT.

Following a discussion in the party leadership, party leader Göran Hägglund says pensioners should go first. There could be heated budget discussions ahead in the ruling four-party centre-right coalition, as the current global financial instability means that the four parties may have to give up manifesto commitments.

The suggestion to cut VAT for restaurants has been a key policy pledge of the Centre Party, and looked like it would be included in the next budget, together with the planned tax cuts for pensioners, before economic forecasts worsened.

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