Options for Revenue-based Fiscal Consolidation

Measures on the revenue side of the budget could raise a total of between € 10 billion and 28 billion, of which € 2.4 billion would originate from taxes and levies and the rest would be privatisation proceeds. The first choice would be slashing tax exemptions: an increase of excises on the consumption of energy and the environment and on other "public bads" as well as an enhanced use of specific wealth taxes. Overall, this combination of measures is considered more advantageous than the alternative of raising VAT and social contributions because of its positive effects on economic structure, growth and distribution.