BERLIN, July 5: German Chancellor Gerhard Schroeder vowed on Saturday there would be no tax increases next year to help finance government plans to cut income taxes and said he saw growing signs of recovery Europe’s biggest economy.

Schroeder said in an interview with Der Spiegel magazine that the sweeping income tax cuts would be financed through a combination of higher economic growth, reduced government subsidies, privatising government holdings and new borrowing.—Reuters