Listen to RFI News
Expand Player
 
Listen Download Podcast
  • Paris Live PM 1300 - 1400 GMT
    News bulletin 08/23 13h00 GMT
  • Paris Live PM 1300 - 1400 GMT
    News bulletin 08/22 13h00 GMT
  • Paris Live PM 1300 - 1400 GMT
    News bulletin 08/21 13h00 GMT
  • 13h00 - 14h00 GMT
    News bulletin 04/05 13h00 GMT
  • 13h00 - 14h00 GMT
    News bulletin 04/04 13h00 GMT
  • 13h00 - 14h00 GMT
    News bulletin 04/03 13h00 GMT
To take full advantage of multimedia content, you must have the Flash plugin installed in your browser. To connect, you need to enable cookies in your browser settings. For an optimal navigation, the RFI site is compatible with the following browsers: Internet Explorer 8 and above, Firefox 10 and +, Safari 3+, Chrome 17 and + etc.
Economy

French government plans cuts, tax rises to balance budget

media French Finance Minister Pierre Moscovici Reuters/Philippe Wojazer

France's government insists the French economy will grow this year, contradicting economists who predict a mild recession. Plans to raise taxes and cut spending have sparked criticism from right and left.

The French finance ministry on Wednesday presented a stability plan including higher taxes and 20 billion euros in savings would reel in the deficit to European-set targets.

But it's also banking on economic growth of 0.1 per cent this year and 1.2 per cent in 2014, whereas the International Monetary Fund and the French council for public finances predict slight contractions.

Dossier: Eurozone in crisis

The government predicts that job creation will start to revive in the second quarter of 2013, leading to unemployment beginning to decline in the last quarter.

The plan proposes that 46.3 per cent of revenue will come from taxes, rising slightly to 46.5 per cent in 2014, bringing France to the second position in Europe behind Denmark, which was at 48.2 per cent in 2010, and leading to criticism from the right.

The government intends to reduce public spending by 60 billion euros by 2017, including with a cut of one billion euros in family allowance to the most well-off.

Unions have already criticised the predicted reduction in payment of unemployment benefit based on the hypothetical reduction in joblessness figures.

The European Commission could sanction France for exceeding deficit targets and said it would carefully examine the government's plans.

Related
 
Sorry but the period of time connection to the operation is exceeded.