Arab Today, arab today france unprecedented cuts in next budget
Last Updated : GMT 18:42:31
Arab Today, arab today
Arab Today, arab today

France: Unprecedented cuts in next budget

Arab Today, arab today

Arab Today, arab today France: Unprecedented cuts in next budget

Paris - AFP

France on Wednesday announced \"unprecedented\" cuts in its next budget, admitting it will not meet its EU-mandated deficit target this year and that the economy will do worse than previously expected in 2014. Despite emerging from a shallow recession in the second quarter, France is struggling to get its tepid economy back on track amid record-high unemployment, limited investment and low consumer spending. Prime Minister Jean-Marc Ayrault said there would be \"unprecedented\" cuts of 15 billion euros ($19.8 billion) in the 2014 budget -- one billion more than previously indicated by the Socialist government. \"It\'s a budget to kickstart job creation, that\'s the main battle,\" Ayrault said. Another 3 billion euros will be raised through increased taxes, Budget Minister Bernard Cazeneuve said, as government officials unveiled the broad outlines of next year\'s public finances. The Socialists had previously floated the idea of 6 billion euros in new taxes, but Finance Minister Pierre Moscovici said there would be no increases in employer payroll or household tax contributions. Government spokeswoman Najat Vallaud-Belkacem said the focus was on spending cuts over tax increases in order to \"ensure competitiveness and allow domestic demand to take off again.\" Economists say France\'s high labour costs are making it less competitive in the global economy and consumer spending has fallen in recent years amid the wider eurozone economic crisis. --- Lack of meaningful growth --- France\'s economy did enjoy higher-than-expected growth in the second quarter -- echoing a wider recovery in the eurozone -- but there have been no indications of a sustained return to meaningful growth. Moscovici said the government was lowering its growth forecast for 2014 to 0.9 percent, from a previous prediction of 1.2 percent. It is maintaining its 0.1 percent growth forecast for this year, he said. Moscovici said France\'s 2013 public deficit will come in at 4.1 percent of GDP, higher than the 3.9 percent agreed with the European Union, but vowed Paris would meet its 2015 EU-mandated deadline to bring the deficit below 3 percent. The 2014 deficit will come in at 3.6 percent, he said. In May, the European Commission gave France an additional two years to bring its public deficit back under the EU ceiling. It said France should cut the public deficit from 4.8 percent of GDP in 2012 to 3.9 percent in 2013, then 3.6 percent in 2014 and 2.8 percent in 2015. \"The pace of deficit reduction is not going as quickly as we\'d like,\" Cazeneuve said, adding this was \"essentially\" the result of the \"European and international context\". The full budget is to be presented to the cabinet on September 25 before being put to a parliamentary vote. With 80 percent of savings next year coming from cuts, Moscovici described the budget as \"courageous and reformist\". \"This is an aggressive and fair budget that supports growth today and prepares for the growth of tomorrow,\" Moscovici said. The budget includes increases in the value-added tax and cuts in several types of tax breaks, including for health insurance contributions and assistance with paying for school and university fees. The main opposition right-wing UMP said the cuts in tax breaks were in effect tax hikes and would have a significant impact on household spending power. \"If household spending power falls again in 2014 because of tax payments then consumer spending, one of the key drivers of the economy, will feel it,\" said Gilles Carrez, the UMP head of the finance committee at the lower house National Assembly. \"We must be much more courageous on spending,\" Carrez said. \"The big unknown about this budget is where exactly the savings will come from.\" President Francois Hollande\'s government has struggled to turn the economy around since he took over from conservative Nicolas Sarkozy last year, and Hollande has become deeply unpopular. The government has vowed to reverse this year a steady rise in unemployment -- which topped 3 million for the first time in the second quarter -- but economists say that\'s unlikely. Adding to Hollande\'s woes, the INSEE national statistics agency said Wednesday that 34,600 commercial jobs were lost in the second quarter, a huge increase from the 4,700 such jobs lost in the first quarter.

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 france unprecedented cuts in next budget Arab Today, arab today france unprecedented cuts in next budget

 



Arab Today, arab today
Arab Today, arab today Fadi explains secrets of  Nancy Ajram's newlook

GMT 18:23 2017 Friday ,24 February

Fadi explains secrets of  Nancy Ajram's newlook
Arab Today, arab today Egyptian tourist guide explains types of tourism

GMT 18:28 2017 Saturday ,25 February

Egyptian tourist guide explains types of 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 Iran complying with nuclear deal

GMT 07:14 2017 Saturday ,25 February

Iran complying with nuclear deal
Arab Today, arab today Zainab al-Maliki reveals herTV presenter models

GMT 18:12 2017 Friday ,24 February

Zainab al-Maliki reveals herTV presenter models

GMT 05:20 2017 Thursday ,23 February

WTO ratifies first multilateral trade deal

GMT 21:36 2017 Wednesday ,22 February

Opec needs to prolong cuts to eliminate surplus

GMT 16:32 2017 Wednesday ,22 February

US Treasury chief tells IMF to monitor currencies

GMT 16:08 2017 Wednesday ,22 February

Qatari banks merger to rebalance financial sector

GMT 05:57 2017 Wednesday ,22 February

Britain risks clash with EU over RBS bailout
View News in Arabic - Business: نفط وبتروكيماويات
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 Penguins in the age of dinos

GMT 11:44 2017 Saturday ,25 February

Penguins in the age of dinos
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today 'Constructive' Vauxhall talk with union

GMT 08:54 2017 Saturday ,25 February

'Constructive' Vauxhall talk with union
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 Actress Lobna Abdel Aziz proud of her career

GMT 06:08 2017 Thursday ,23 February

Actress Lobna Abdel Aziz proud of her career
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage

GMT 07:36 2017 Wednesday ,22 February

Wafaa Amer is happy for Sherihan’s return

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 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 20:33 2017 Friday ,17 February

To release new antiques collection

GMT 10:20 2017 Thursday ,23 February

Brazil's top diplomat resigns

GMT 11:54 2017 Thursday ,23 February

Saudis await visitors but will they come?

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