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?
Copyright © 2014 euronewsMore about:
- 1Heavy fighting in Donetsk; possible mass grave discovered
- 2Catalan independence put on hold: constitutional court suspends vote
- 3Migrant deaths in Mediterranean reach a record 3,072 in 2014
- 4Red alert in southern France as heavy rains sweep Languedoc region
- 5Spain: Constitutional court votes to suspend Catalonia independence referendum
- 1Algeria: ISIL offshoot releases video threatening French hostage Hervé Gourdel
- 2Update: Emma Watson nude photos threat may be elaborate PR stunt
- 3Iceland volcano ‘pollutes Paris’
- 4Teenage ‘terror suspect’ shot dead by police in Australia after attacking officers
- 5Watch: Leonardo DiCaprio speech among five must-see clips on UN climate summit
- 1Podemos: Spanish indignation in Brussels’ corridors of power | euronews, reporter
- 2Watch: Angry mob throw Ukraine MP into rubbish bin | euronews, world news
- 3Iraq: Baghdad rally held against US ‘occupiers’ | euronews, world news
- 4New car offers freedom for disabled drivers | euronews, hi-tech
- 5Now is ‘right time’ for Catalonia independence vote, says Mas | euronews, world news
- 6Israel announces it will seize 400 acres in West Bank | euronews, world news
- 73D printing: a driving force in design and engineering | euronews, hi-tech
- 8Rise of the machines | euronews, futuris
- 9Ukraine: Donetsk rebel weapons factory blows up | euronews, world news
- 10Young Yazidi girl escapes Islamic State kidnappers | euronews, world news
- 11Vatican rocked by another paedophilia scandal | euronews, world news
- 12Two container ships collide on Egypt’s Suez Canal | euronews, no comment
- 13Algeria: ISIL offshoot releases video threatening French hostage Hervé Gourdel | euronews, world news
- 14#Indyref Live: Scotland votes on independence from UK | euronews, world news
- 15Thousands ‘evade’ Ebola lockdown in Sierra Leone | euronews, world news
- 16British Muslims’ message to ISIL: Not in my name! | euronews, world news
- 17Iceland puts on a show as two of its volcanoes spew out lava | euronews, world news
- 18The business benefits of EU chemical regulation | euronews, business planet
- 19Iceland volcano ‘pollutes Paris’ | euronews, world news
- 20Emma Watson threatened with naked photos leak after UN equality speech | euronews, world news
Wires > News
- 03:58 CET Palestinians draft U.N. resolution on ending Israel occupation
- 03:06 CET Greenland votes to hold parliamentary election in November
- 03:01 CET Greenland’s parliament votes to hold parliamentary election
- 02:03 CET Mexico captures drug lord Beltran Leyva – government source
- 01:16 CET Mexico captures drug lord Beltran Leyva – government source
- 01:08 CET Dallas Ebola patient vomited outside apartment on way to hospital
- 23:39 CET Israel’s Netanyahu to Obama: Don’t allow Iran deal that leaves it…
- 23:28 CET U.S. Army drops murder charges against soldier in slaying of Iraqi…