EU leaders fail to agree on reduced VAT rates

EUROPEAN Union leaders failed at a summit to broker a deal on extending reduced value-added tax (VAT) rates on key services just two weeks before they expire, as German concerns remained a hurdle.

Instead, they instructed finance ministers, who have been deadlocked for months on the issue, to make another attempt to find a solution next month.

“I do think this is a piece of business finance ministers will have to deal with and bring this job to a conclusion,” Luxembourg Prime Minister Jean-Claude Juncker told reporters.