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
- 1Poland ‘has located’ buried Nazi treasure train
- 2Disruption continues after travellers end French motorway blockade
- 3Martin Schulz attacks ‘cynical’ EU governments over migrants crisis
- 4Destination northern Europe: thousands make daily ‘journey of death’
- 5Palestinian women and children force Israeli soldier to release boy
- 1Poland ‘has located’ buried Nazi treasure train
- 2Budapest vigil for 71 found dead on Austrian motorway
- 3Disruption continues after travellers end French motorway blockade
- 4Germany wants camps in Italy, Greece, Turkey to sort through migrants seeking asylum
- 5Tropical Storm Erika threatens Haiti and Dominican Republic with mud slides
- 1‘Dude, I tried to shoot him’: video shows moments after train attack in France
- 2Virginia:TV journalist and cameraman shot dead live on air
- 3New York: toplessness in Times Square could change forever
- 4US shootings: suspect dies of gunshot wounds
- 5France awards Legion of Honour to men who disarmed train gunman
- 1euronews live TV - News | euronews : the latest international news as video on demand
- 2International breaking news | euronews online world breaking news in video
- 3Caught red-handed: the Russian Major fighting in Ukraine
- 4Video footage shows massive explosion in Tianjin, China
- 5Ukraine puts top Russian general Gerasimov on ‘most wanted’ list
- 6Why World Elephant Day matters
- 7Latest News Bulletin
- 8Who came out top in the US Republican television debate?
- 9UK: at least 7 dead after plane crashes into road in Brighton
- 10Snowden, Assange and Manning statues unveiled in Berlin
- 11Virginia:TV journalist and cameraman shot dead live on air
- 12ISIL militant group claims to have killed Croatian hostage in Egypt
- 13Earth Overshoot Day…Pushing Mother Nature too far
- 14Windows 10, three weeks on: the good, the bad and the ugly
- 15International news | euronews, latest international news
- 16Bringing the trolls out of the dark: Russian ‘troll’ awarded 1 rouble damages
- 17As ‘Daily Show’ Jon Stewart’s tenure ends, scholars say goodbye to their research topic
- 18Momentum for Mars: Astronauts say mission is inevitable
- 19European Union News | euronews: latest breaking news and headlines about European Union
- 20Scientists find sinkhole cave under Mexico’s Kukulkan Castle Pyramid
Latest world news
Austria and Hungary hope arrests will lead to human trafficking ringleaders
‘Iranian expansion’ warning from Yemen’s exiled president Hadi
Migrant crisis: Joint border patrols by Bulgarian and Hungarian police
Cries of ‘Revolution’ at Lebanon rubbish rally
Destination northern Europe: thousands make daily ‘journey of death’
Wires > News
- 16:03 CET Central African Republic court bars transitional government…
- 15:53 CET Iran jails two people for 10 years on espionage charges
- 15:50 CET Irish government says Sinn Fein must help ensure IRA put ‘out of…
- 15:38 CET Thousands troop to Philippine highway for third night in Church…
- 14:58 CET One child, police officer killed in attacks in southeast Turkey
- 14:03 CET Brazil’s crafty Senate boss helps keep Rousseff afloat
- 13:19 CET Egypt summons UK ambassador over criticism of Al Jazeera trial
- 13:18 CET Gunmen attack small Pakistani airport, kill two engineers