Arab Today, arab today new french pm sets out agenda
Last Updated : GMT 23:28:49
Arab Today, arab today
Arab Today, arab today

New French PM sets out agenda

Arab Today, arab today

Arab Today, arab today New French PM sets out agenda

Paris - AFP

French Prime Minister Jean-Marc Ayrault outlines his new government\'s agenda on Tuesday, hamstrung by promises to voters and EU authorities amid an audit warning of 43-billion-euro budget hole. In Europe, the eurozone crisis still burns and at home his finance minister has just warned that economic growth will be lower than forecast. The projected two-year shortfall of up to 43 billion euros is what has to be covered with spending cuts and tax increases to reduce the overall public deficit by stages to targets for this year and next. Ayrault\'s speech will be closely watched by voters, businesses and the right-wing opposition in France but also by financial markets worldwide as France along with Germany is a key player in resolving the eurozone debt crisis. The Socialist government under President Francois Hollande, whose poll mantra had been growth over belt-tightening, may be forced to review pledges to voters to create jobs, spur growth and reduce the public deficit. The state audit office, which warned that the budget must be adjusted by up to 10 billion euros this year and by 33 billion euros ($41.7 billion) next year, raised prospects that sweeping cuts -- and deeper than expected -- are now inevitable. The Les Echos financial daily\'s top headline on Tuesday was \"France condemned to unprecedented austerity.\" The newspaper foresaw that salary freezes, cuts in public sector current spending, and a review of grand infrastructure projects were in the pipeline. It said that the construction of high-speed rail networks could be cut back to help cut the public deficit. The left-leaning Liberation newspaper underscored the government\'s \"historic responsibility to take charge of France\'s financial recovery.\" The prime minister \"has his back to the wall,\" Le Parisien daily added. France is set to revise growth forecasts for this year to 0.4 percent from 0.5 percent and for next year to 1.3 percent from 1.7 percent. During his election campaign, Hollande pledged to reduce public debt, the accumulation of past deficits, based on the earlier, more optimistic, forecasts. France has run budget deficits since the 1970s. But already the right-wing opposition is attacking the Ayrault government for reintroducing the austerity approach which the Socialists had strongly attacked when they were on the opposition benches. Valerie Pecress, the budget minister in the centre-right government of Hollande\'s predecessor Nicolas Sarkozy, said ahead of the speech that the \"austerity of the left is hypocritical.\" She said in a radio interview: \"Who will believe that the budget can be balanced by doubling the annual direct wealth tax and by lowering the salaries of ministers?\" She said that \"the austerity of the left will be far more brutal than that of the right,\" and added: \"The truth is that all French people will have to bear the burden.\" France has promised its Euopean Union partners to reduce the public deficit from 5.2 percent of output in 2011 to 4.5 percent at the end of this year. Prime Minister Ayrault has already ordered ministries to slash spending by seven percent next year and said some public sector jobs will be cut. After his hour-long speech before the National Assembly, the proposals will be put to vote, a mere formality as the government has a comfortable majority in the house. The government will then announce budget adjustments on Wednesday. Budget Minister Jerome Cahuzac, contradicting a suggestion in the audit report, has said there would be no increase in value-added sales tax (VAT) in the revised budget for 2012. He added: \"As the president and prime minister have said, next year there will be no increase in state spending even with inflation factored in.\" Hollande had pledged to create new jobs, impose a 75-percent tax on income of more than one million euros and has already committed the government to raising the minimum wage by 2.0 percent. The audit office said that for 2013, on the basis of a commitment of reducing the deficit to the EU ceiling of 3.0 percent of gross domestic product, widely-based taxes such as VAT sales tax or the complementary social CSG tax, would have to be raised, at least temporarily. \"I am waiting for the mea culpa,\" or an admission of error, said Jean-Francois Cope, a leader of Sarkozy\'s UMP party. \"Despite the crisis, we had the courage to undertake difficult reforms,\" he added. The auditors found that surprises from unexpected spending on commitments made by the last centre-right government were limited, totalling 1.2-2.0 billion euros.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today new french pm sets out agenda Arab Today, arab today new french pm sets out agenda

 



Arab Today, arab today
Arab Today, arab today Fadi Kataya explains secrets of  Nancy Ajram's newlook
Arab Today, arab today Messi visit will contribute in tourism

GMT 14:04 2017 Friday ,24 February

Messi visit will contribute in tourism
Arab Today, arab today Expresses Algerian history by woody figures

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures
Arab Today, arab today Mental conflict endures

GMT 07:36 2017 Friday ,24 February

Mental conflict endures

GMT 06:25 2017 Thursday ,23 February

Bupa Arabia sponsors SMEA forum

GMT 06:11 2017 Thursday ,23 February

Football: Turkish company wins Qatar World Cup contract

GMT 05:46 2017 Thursday ,23 February

SABIC net profits fall in 2016

GMT 21:01 2017 Wednesday ,22 February

Saudi Aramco mulls offering citizens discounted shares

GMT 16:50 2017 Wednesday ,22 February

Yahoo salvages Verizon deal
View News in Arabic - Business: أخبار الشركات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Reading therapy relieves mental disorders

GMT 15:39 2017 Friday ,24 February

Reading therapy relieves mental disorders
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Nissan enhances sales in most markets

GMT 14:08 2017 Monday ,20 February

Nissan enhances sales in most markets
Arab Today, arab today Wafaa Amer is happy for Sherihan’s return

GMT 07:36 2017 Wednesday ,22 February

Wafaa Amer is happy for Sherihan’s return
Arab Today, arab today Milan laughs while Rome cries

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 05:19 2017 Tuesday ,21 February

Salma Rashid happy for 'A Whisper of Love'

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 22:42 2017 Thursday ,23 February

Nasima Gamei revives heritage in jewelries

GMT 15:53 2017 Tuesday ,21 February

Small ponds have outsized impact

GMT 20:33 2017 Friday ,17 February

To release new antiques collection

GMT 07:51 2017 Wednesday ,22 February

Mom's immune system accepts babies

GMT 09:59 2017 Monday ,20 February

Tourism shows signs of recovery

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 20:02 2017 Tuesday ,21 February

Nohan Seyam designs beautiful accessories
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday