International Business

Bank Urges Russian Tax Reform: The system needs reform to prevent the budget deficit--blamed for the recent ruble crisis--from widening still further, the European Bank for Reconstruction and Development said. The bank urged reforms in both Russia and other former Eastern bloc countries and chided European Union countries for hampering such reform by erecting trade barriers. Russia sharply reduced its budget deficit in 1993 and during the first half of 1994. The deficit has since begun climbing again, to 10% of national output, even though the government has chopped spending this year. Tax revenues have slumped. The government has been forced to borrow from the central bank to cover the shortfall, swelling the money supply and rekindling inflation.