But there would be a government subsidy of up to DM400 a year to tempt low- and middle-income earners.

ECONOMIST: Germany��s age-old problem

By the by, Mr Persson abruptly dropped his finance minister's proposal, made only a month ago, to reduce taxes for low-and middle-income earners.

ECONOMIST: Sweden

Party chairman Grant Shapps suggested the Conservatives had been too "shy" about trumpeting what they had done to support low and middle-income earners in tough times.

BBC: Conservative conference: Cameron in benefit cuts warning

Opening the four-day conference, party chairman Grant Shapps suggested the Conservatives had been too "shy" about trumpeting what they had done to support low and middle-income earners in tough times.

BBC: Conservative conference: Cameron rules out 'mansion tax'