It is France’s turn to feel the cold wind of austerity following the publication of the Socialists’ first budget.
It aims to raise 30 billion euros from higher taxes and savings in public spending to get the budget deficit down to three percent of GDP by the end of next year.
There will be higher taxes on the rich, but none of the structural reforms forced upon the Greek, Portuguese or Spanish governments.
“In this Europe whose orientation is changing, France has a particular role to play… and what we’re doing today with the budget is a major policy move, an act of confidence, an act of mobilisation,” said Prime Minister Jean-Marc Ayrault.
France has not had a budget surplus since 1974, and is taking this step to shore up market confidence in its economy and bolster the euro. But with no growth and climbing unemployment, is it the right time to hit the brakes?
“This is a budget that will cause a recession in our country. Taxes will hit companies and then they will not invest more and create more jobs. They will hit households and then they will consume less so that will not create more jobs,” said the opposition UMP’s former budget minister Valerie Precresse.
Unemployment in September hit a 13-year high, with a rising number of long-term and young unemployed. The French have never been slow to take to the streets to protest; how long will it be before they challenge the government?
- 1Chomsky says US is world’s biggest terrorist
- 2Unverified video appears to show ISIL killing of 30 Ethiopian Christians
- 3More Mediterranean deaths as desperate migrants head to Europe
- 4‘More powerful than a nuke’: Kim Jong-un refreshed after ‘climbing highest peak’
- 5South Africa’s Zulu king calls for end to anti-immigrant attacks
- 1euronews live TV - News | euronews : the latest international news as video on demand
- 2Chomsky says US is world’s biggest terrorist | euronews, the global conversation
- 3Chomsky – a rebel with a cause | euronews, world news
- 4[LIVE] Germanwings passenger jet crashes in southern France, 148 people on board – authorities | euronews, world news
- 5Europe is ‘bluffing’ over Greece-Russia relations – analyst | euronews, news
- 6eurovibes - a selection of Europe’s best music talent
- 7French Alps plane crash treated as suicide and mass murder by co-pilot | euronews, world news
- 8Why is Bulgaria the EU’s most unhappy country? | euronews, world news
- 9International tv news | euronews: European and International tv news bulletin
- 10Former IMF chief ‘under investigation for money laundering’ | euronews, world news
- 11Greece’s claim for war reparations from Germany explained | euronews, world news
- 12International news | euronews, latest international news
- 13Pope Francis washes Rome prisoners’ feet on Holy Thursday | euronews, world news
- 14ECB chief Mario Draghi unhurt after protest during speech | euronews, world news
- 15Woman carries can of water on her head along Paris marathon | euronews, world news
- 16Reaching new heights: Parents in India scale walls to ‘help students cheat’ | euronews, world news
- 17Germanwings press conference mystery: what wasn’t he supposed to say? | euronews, world news
- 18French prosecutor: Germanwings co-pilot appears to have crashed plane deliberately | euronews, world news
- 19[Live updates] France plane crash: damaged black box ‘can provide information’ | euronews, world news
- 20Fighting Boko Haram: Chad aims to ‘destroy’ militant group | euronews, world news
Wires > News
- 01:56 CET Bomb explodes at Spanish embassy in Libyan capital
- 01:50 CET At least five shot during Guinea opposition protests
- 00:34 CET Canada to issue passport to jailed Al Jazeera journalist Fahmy
- 00:26 CET U.S. offers Ukraine $17.7 million in humanitarian aid – White House
- 23:53 CET U.S. Navy sends more warships near Yemen in security move
- 23:48 CET Obama, Abu Dhabi crown prince discuss need for military equipment
- 23:40 CET New York Times wins Pulitzers for West Africa Ebola coverage
- 23:35 CET U.S. says might talk to Iran about regional stability, cites Syria