France acts to bolster industry
France’s Socialist government unveiled measures to bolster the struggling industrial sector and make exporters more competitive.
Prime Minister Jean-Marc Ayrault proposed new incentives for investment in innovation, small businesses and training and tax credits for companies keeping jobs in France, as a way of easing their costs in the current downturn.
Measures included 20 billion euros in tax credits over three years, an extra 10 billion euros in public spending cuts and a 10-billion-euro increase in consumer taxes, two-thirds of which will come from the VAT sales tax from Jan. 1, 2014.
The main VAT tax will rise from 19.6% to 20% but both intermediate VAT tax rates of 5.5% and 7% will also be changed. The Prime Minister’s cabinet explained that all three VAT rates will be set into a more simple triptych: 5%, 10% and 20%.
The government also announced, in a document published before Jean-Marc Ayrault’s declaration, a new environmental tax system from 2016 of “at least 3 billion euros”.
All these measures follow a government-commissioned report submitted on Monday by industrialist Louis Gallois.
During a 30-minute press conference on Tuesday morning, Prime Minister Jean-Marc Ayrault declared that the government is following “almost all” of the recommendations contained in Louis Gallois’s report.
He finally announced that the government will present “several bills” at the beginning of 2013 to coordinate all the package’s measures.
Finance Minister Pierre Moscovici said the government spread the report’s proposals out over its five-year term to avoid a sudden jolt in consumption taxes that might hit households and stifle spending.
President Francois Hollande, criticised in opinion polls for being too timid in tackling the economic crisis, had previously said he preferred a steady path to better competitiveness to shock therapy.
With AFP & Reuters
Copyright © 2014 euronewsMore about:
- 1Pakistanis protest against Taliban as army intensifies offensive in north-west
- 2Israel launches airstrike on Gaza in apparent retaliation for rocket attack
- 3Australian mother arrested after eight children stabbed to death
- 4Obama says Sony made a “mistake” in cancelling movie over cyber threats
- 5Kyiv terror plot foiled, says Ukrainian security service
- 1Eight children stabbed to death in Cairns, Australia
- 2Putin tries to reassure over rouble worries, but also slams the West
- 3Pakistanis protest against Taliban as army intensifies offensive in north-west
- 4US homeowner ‘defending his castle’ found guilty of killing German teenager
- 5Ukraine: Conflict could soon be over says optimist President Poroshenko
- 1Rosetta team is euronews’ people of 2014
- 2Thailand’s Princess Srirasmi renounces royal status and will divorce
- 3Left-wing extremists run riot in upscale Zurich, Switzerland
- 4Australia: two hostages and gunman dead after police storm Sydney siege café
- 5Putin answers press questions on Ukraine, NATO and the Russian economy
- 1euronews live TV - News | euronews : the latest international news as video on demand
- 2Watch: Passengers ‘push-start’ frozen plane in Siberia | euronews, world news
- 3Le Pen: I admire ‘cool head’ Putin’s resistance to West’s new Cold War | euronews, interview
- 4What will you ask US Senator John McCain? | euronews, world news
- 5McCain blasts Europe’s approach to Ukraine conflict ‘a joke’ | euronews, the global conversation
- 6Which countries in Europe cause the most air pollution damage? | euronews, world news
- 7Moldova pro-EU parties take narrow lead in elections | euronews, world news
- 8Grenoble: Europe’s first ad-free city | euronews, world news
- 9NATO joins search for ‘Russian submarine’ off Scottish coast | euronews, world news
- 10European Union News | euronews: latest breaking news and headlines about European Union
- 11Obama’s ‘risky’ immigration gamble | euronews, world news
- 12Ukraine reports accident at Zaporizhzhya nuclear power plant | euronews, world news
- 13Crude awakening: Romania’s Black Sea oil and gas finds fuel Europe’s energy hopes | euronews, reporter
- 14Irony as organised crime prosecutor arrested for corruption in Romania | euronews, world news
- 15The American Century comes to an end as China becomes the world’s largest economy | euronews, economy
- 16International breaking news | euronews online world breaking news in video
- 17Belgium’s former queen Fabiola dies at 86 | euronews, world news
- 18Germans demand honour for Turkish woman beaten to death | euronews, world news
- 19Chechen ‘death’ unit fighting with rebels in eastern Ukraine | euronews, world news
- 20Portugal: Ex-PM José Socrates held in corruption probe | euronews, world news
Wires > News
- 19:15 CET Cuba says U.S. must respect its communist system
- 18:58 CET Ukraine to spend five percent of 2015 budget on defence and…
- 18:41 CET Egypt receives 10 Apache helicopters from U.S. – sources
- 18:24 CET North Korea says did not hack Sony, wants joint probe with U.S.
- 18:18 CET U.S. sends four Guantanamo prisoners home to Afghanistan
- 18:03 CET Sudan postpones April elections by 11 days – elections committee
- 17:14 CET CIA unlikely to punish staff over Senate computer search – NYT
- 17:07 CET Indian PM Modi’s party unlikely to form Jammu & Kashmir government…