On 24 August, French Prime Minister Francois Fillon announced a new set of austerity measures, included in the 2012 budget draft expected to be approved in late September. The deficit-reduction plan entails an additional freeze of government spending, a cap on tax breaks and an increase in income tax (including a one-off levy on incomes over EUR 500,000 per year), as well as higher levies on alcohol and tobacco. The estimated spending cuts amount to a total EUR 12 billion this year and next, which would bring this year's fiscal deficit to 5.7% of GDP and to 4.5% of GDP in 2012, before narrowing further to 3.0% in 2013. The move came amid lower growth prospects for this year, which could jeopardize the government's 2011 fiscal deficit target. Official forecasts now see economic growth at 1.75% this year and next, instead of the previous 2.0% and 2.25% respectively. The downward revision comes on the back of a poor Q2 GDP result and takes into account the developments in the U.S. economic situation and the impact of the European sovereign debt crisis.
France introduces new austerity measures in the 2012 budget draft
September 1, 2011
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France Economic News
October 3, 2016
According to preliminary figures released by the National Statistical Institute (INSEE), consumer prices in September dropped 0.2% over the previous month, contrasting August’s 0.3% increase.
September 28, 2016
The consumer confidence indicator produced by the National Institute of Statistics and Economic Studies (INSEE) remained stable in September at August’s 97 points.
September 23, 2016
The composite Purchasing Managers’ Index (PMI), produced by IHS Markit, rose in September.
September 23, 2016
The French economy contracted in the second quarter.
September 22, 2016
According to the National Institute of Statistics and Economic Studies’ (INSEE) business climate survey, the business confidence indicator rose from August’s over-one-year low of 101 points to 103 points in September.