The European Union's finance ministers Tuesday offered their mixed blessing to a set of measures aimed at helping the bloc weather a financial crisis and recession double whammy, according to dpa. The European Commission's economic recovery plan was watered down, with ministers striking out a reference to its headline figure of 200 billion euros (252 billion dollars) in a text due to be agreed next week by heads of state and government. And despite calls for a better coordination of economic policies, Britain was left isolated in its effort to boost consumption through cuts in the standard rate of value-added tax (VAT), with none of the other 26 member states indicating that they would be following its lead, reported the dpa. The opportunity of reducing the standard VAT rate on goods and services to a minimum level of 15 per cent for a limited period was tabled by the European Commission last week as part of its 200- billion-euro (252-billion-dollar) recovery plan. Current VAT levels vary widely across the EU - from 25 per cent in Sweden and Denmark to 15 per cent in Luxembourg and Cyprus. Member states can also apply special reduced rates on certain products.
