Austria's coalition government agreed to reduce thecountry's annual bank tax starting 2017, Reuters reported July 12, citing ChancellorChristian Kern.

The overall annual amount will drop to €100 million fromaround €550 million currently.

In exchange for the levy's , Kern said Austria's bankswill have to make a combined one-off payment of €1 billion to the state to aidinvestment in education as well as research and development, the report added.