Thursday, July 1, 2010

Liechtenstein announces 5-year austerity plan

As European countries struggle to rein in public spending in the face of mounting national debt, Liechtenstein's government said Wednesday it too plans budget cuts of $140 million a year.

That's million, not billion.
Still, for a country of just 35,000 people, that amount works out to about $4,000 per inhabitant -- far more than larger countries such as Britain or Germany.
By 2015 the tiny principality hopes to have plugged a budget gap of 15 percent by cutting back on government salaries, health expenditure and pension payments.
The measures will only affect the country's ordinary citizens. Liechtenstein's head of state, Prince Hans Adam II, and his family won't be asked to tighten their belts as they do not receive ANY allowance from the state (as specified in a comment on the comment box).