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European Countries Eye Tax Revamp to Revive Virus-Hit Economies

Sept. 1, 2021, 6:01 AM

European governments are taking the first tentative steps to reopening their economies battered by the Covid-19 pandemic, eyeing the tax system to aid and pay for their recovery.

They’re moving away from borrowing heavily over the past year to bring debt levels under control—according to Eurostat figures, government borrowing in the Eurozone was 97.3% of gross domestic product up from 89% this time last year. Outside the EU, the U.K. borrowed 303 billion pounds ($416 billion) in 2020-21—a peace time record.

“Government’s like the U.K. have been reacting to problems as they arise, which is understandable during the pandemic,” ...