Reform proposals create optimism for Germany

Chancellor Schroeder's reform and tax cut proposals are producing a wave of optimism for the economy. The IFO economic institute report, released last week, shows business confidence is improving as a result of the government's tax cut proposals. The economy has grown by less than 0.6% since the end of 2000. John Hatherly, head of global analysis at M&G, says two quarters of economic contraction have brought the importance of reform to the government's attention. 'The chancellor leans heavily on economic advisers of German multinationals like Volkswagen and Siemens and is conscious o...