Pact agreed

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The Independent Online
Bonn (AP) - After three days of negotiations, federal and state government leaders agreed late yesterday on a new financial package to help pay for the costs of German unification. A main point of the 'solidarity pact' was agreement to postpone a 7.5 per cent tax increase until 1995. The opposition Social Democrats had wanted tax increases sooner. The compromise agreement on taxes came after the government gave in to opposition demands that unemployment benefits not be cut.