Austrian coalition agrees to cut taxes by 5 billion euros

VIENNA (Reuters) - Austria's coalition partners have agreed to cut taxes by 5 billion euros (3.56 billion pounds) to give the stalled economy a boost by increasing consumers' spending power from next year. Details of the tax cut deal, finally struck at talks that went into the early hours of Friday, were due to be presented after review by party leaders from Chancellor Werner Faymann's Social Democrats and his conservative partners. Faymann called the agreement to cut income tax "the biggest tax reform in post-war Austrian history" and People's Party leader Reinhold Mitterlehner said, "We have put together a package that is balanced, stimulates the economy and is positive." Local media reported that the cuts would be financed through cracking down on tax fraud, streamlining government administration, and raising taxes on property and some investment income. Government officials declined to comment ahead of a news conference scheduled for 1700 GMT. The coalition last year rolled out starkly different proposals on how to fund the tax cuts, triggering months of negotiations. ($1 = 0.9453 euros) (Reporting by Michael Shields; Editing by Louise Ireland)