Radical Cutbacks German Government Agrees on Historic Austerity Program

The German government put together the largest austerity package since World War II on Monday, with spending cuts and new business levies aimed at saving 80 billion euros by 2014. Chancellor Angela Merkel says Germany, as Europe's largest economy, must set an example.
German Chancellor Angela Merkel together with her vice chancellor, Guido Westerwelle, head of the Free Democratic Party. Merkel's government passed historic savings measures on Monday.

German Chancellor Angela Merkel together with her vice chancellor, Guido Westerwelle, head of the Free Democratic Party. Merkel's government passed historic savings measures on Monday.

Foto: FABRIZIO BENSCH/ REUTERS
cro -- with wire reports