Close
Log in
Please enter your login details

Skip to main content

Breaking News
  • A member of Russian President Vladimir Putin’s human rights advisory council says she considers Russia’s actions in Ukraine an invasion – REUTERS
  • Ukrainian President Petro Poroshenko says Russian military invasion has taken place in Ukraine, cancels working trip to Turkey – Presidential website
  • Ebola death toll: WHO says the Ebola outbreak in West Africa has taken 1,552 lives out of 3,069 known cases in four countries. Says actual number of cases may be “two-to four-fold higher than currently reported” – REUTERS
  • Ukraine: Rebel leader Zakharchenko says around 3,000 volunteers from Russia are serving in rebel ranks. Says rebels can defeat Ukrainian military without help from Russian state – REUTERS
  • Ebola: Doctor in Nigerian oil industry hub Port Harcourt dies from Ebola virus, infected by a man linked to the first case who evaded quarantine – Nigerian Health Ministry
|

France’s Socialist government unveils its first budget today, and it is expected to be the toughest for 30 years.

France has managed to stave off full-blown austerity until now, but worsening public finances and growth slowing to a standstill in the last quarter means Paris has to slam the brakes on public spending to ease pressure on the euro and stay credible in the international money markets.

“Balancing the government budget is the first step towards improving the growth rate. Now it’s a big risk because it’s possible that, as they try to reduce government spending and return to a balanced budget, they have a negative impact on growth. If growth fails, deficits increase, and they won’t be able to balance the budget. So it’s clearly a risk that he is taking, but that’s the calculation,” says the Paris Institute for Political Studies’ Christopher Bickerton.

Coalition partners the Greens have said they will not vote for the budget in parliament, so it will pass with support from the right.

“I think the French government has actually relatively modest assumptions for the growth outlook in 2013, and I think against that background that France will hit the target of three percent next year,” says Daiwa Capital Markets’ Tobias Blattner.

Thirty billion euros of cuts are designed to get the deficit back to three percent of GDP by the end of next year. But it is all happening as France struggles with its highest unemployment in 13 years.

Copyright © 2014 euronews

More about:
|