Financial Times FT.com

Germany has no appetite for diningVAT cut

By George Parker in Brussels, Hugh Williamson in Berlin and,Martin Arnold in Paris

Published: December 3 2005 02:00 | Last updated: December 3 2005 02:00

Angela Merkel's German government yesterday delivered a blow to the French stomach, saying it will block President Jacques Chirac's plan to cut value-added tax on restaurant meals.

French politicians have lobbied Ms Merkel to back the plan, which would have to be approved by European Union finance ministers in Brussels next Tuesday.

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