Kohl's Ax Is Really Aimed At Europe

Will his reform ideas spread?

Can German Chancellor Helmut Kohl spark a supply-side revolution in Europe? No one would have believed it just a few months ago. But Kohl's Apr. 26 announcement of plans to ax more than $46 billion from government spending and to roll back Germany's costly tax and social security regimes is the strongest signal yet that such a shakeup is on the way. Kohl's proposed budget cuts--the equivalent of 2% of gross domestic product--would slice far deeper in a single year than then-Prime Minister Margaret Thatcher ever did when she launched her bid to reform Britain.

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