In 1987 Denmark introduced a wide-ranging tax reform with the aim of guaranteeing the viability of the social security system while permitting Danish companies to remain competitive.
By reducing non-wage labour costs the measure had a positive impact on German competitiveness.
[7] In 2009 Hungary decided a simultaneous 5% reduction in employer social security contributions and a 5% increase in VAT.
[8][9] In his new year allocution French President Sarkozy announced that France would start to shift social security funding from labour to consumption.
[11] In a television address to the nation on 29 January 2012 Nicolas Sarkozy announced amongst other measures an increase in VAT[12] of 1.6 percentage points from 19.6% to 20% coupled with a partial removal of social security contributions[13] financing child benefits and other family benefits.