16 January 2009 16:58 [Source: ICIS news]
TORONTO (ICIS news)--Germany's chemical industry association VCI on Friday welcomed the European Central Bank’s (ECB) interest rate cut to 2%, but pressed for the suspension of new tax rules that restrict the amounts of interest expenses companies can deduct for tax purposes.
The restrictions, which were introduced last year, prevented chemical producers and others from taking full advantage of the rate cut, said Utz Tillmann, general manager of Frankfurt-based Verband der Chemischen Industrie (VCI).
The new rules were an extra burden on producers amid the current difficult economic environment and as such largely offset the postive impulse from the ECB's interest rate reduction, he added.
The ECB on Thursday cut rates by a half percentage point to 2% as economic data showed signs of a deepening recession in the 16-member euro area.
VCI, for its part, expects ?xml:namespace>
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections