French PM Unveils Austerity Measures To Save Extra EUR7B In 2012

[dipsydoodle]

Source: WSJ

PARIS (Dow Jones)--French Prime Minister Francois Fillon Monday unveiled the country's second austerity package in under three months including increases in sales taxes, an acceleration of the pension reform and a levy on big business.

The austerity package comes as growth prospects have dwindled with the euro-zone debt crisis, and after France, the currency bloc's second largest economy, was warned last month that the outlook on its prized triple-A credit rating is under pressure.

Fillon said the measures announced will save EUR7 billion in 2012, enabling France to meet its target of deficit at 4.5% gross domestic product with growth at 1% rather than 1.75% as previously forecast.

French President Nicolas Sarkozy had already pledged to finalize the austerity plan once the Group of 20 summit was over.

Read more: http://online.wsj.com/article/BT-CO-20111107-704215.html

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France reveals further budget savings.

France has announced plans for further budget savings of 7bn euros ($9.6bn; £6bn) in 2012 and 11.6bn euros in 2013.

The eurozone's second biggest economy is seeking to reduce its deficit and protect its triple-A credit rating.

PM Francois Fillon announced measures including an acceleration in pension reform and a rise in VAT and corporation tax.

The cutbacks come on top of 12bn euros of planned savings over the next two years, announced in August.

http://www.bbc.co.uk/news/business-15620652

[Mass]

1. Hopefully, this will help Hollande be elected next spring.