In the 1980s recession, the Conservatives raised VAT to balance the budget, while in the 1990s a variety of indirect taxes were increased or created.

BBC: Dodging the spending challenge

Merkel and her coalition partners hadn't reneged on their tax-cutting campaign promises and raised VAT and other taxes in a bid to stay close to budget balance.

WSJ: Review & Outlook: Europe's Phony Growth Debate

As taxes go, a VAT is one of the least offensive, and a levy on bank balance sheets that penalizes excessive risk can in principle reduce the likelihood of panics.

FORBES: The U.K. Austerity Plan Is a 77% Solution