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"While we are pleased that government has rejected the siren calls of some employers to freeze the minimum wage for adult workers and apprentices, these increases are still far below inflation and will leave the lowest paid facing a real terms cut, " said the TUC.
BBC: Minimum wage and VAT changes take effect
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The TUC has issued its own economic plan, which contains measures including cutting VAT, reversing the public sector wage freeze and giving a one-off increase in child benefits before Christmas.
BBC: Pension funds urged to join ?30bn infrastructure plan
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Over the past year, Europe's sovereign-debt storm has forced Rome to introduce emergency measures including an unpopular new property tax, a public-sector wage freeze and raising the retirement age to 68 from 65.
WSJ: A Generation In Italy Feels the Fiscal Squeeze