German Cities Association Rejects Government Reforms

The German Association of Cities (DST) decided on Friday to oppose government plans for tax reforms meant to relieve Germany's cash-strapped cities. The reforms would force towns to take cost-cutting measures and reduce benefits, the DST said. The plans foresee introducing business tax for freelancers and the self-employed, rolling the social and welfare benefits cities pay their jobless into one payment and closing tax loopholes. The changes are aimed at lightening cities' financial burdens by more than €4.5 billion ($5.1 billion) by 2004.