On 7 November, the government unveiled a new plan to trim the budget deficit by EUR 7 billion in 2012 and EUR 11.6 billion in 2013, which comes on top of the August austerity package already included in the 2012 budget draft. The package aims at compensating the downward revision of economic growth assumptions for 2012 (from 1.75% to 1.0%) and to meet the deficit target of 4.5% of GDP in 2012 and 3.0% of GDP in 2013. The deficit-reduction plan entails, among other measures, a one-time 5% increase in corporate tax for large corporations through 2013, an increase of the reduced-VAT from the current 5.5% to 7.0% (except for some basic goods) and further reductions in health-care spending. The austerity plan is aimed at shielding the country against contagion from the European debt crisis. Fears of contagion have already prompted international rating agencies Moody's and Standard and Poor's to place France's current AAA rating under revision. French borrowing costs are increasing as contagion from the debt crisis spills over into the core economies of the euro area. The 10-year bond yield reached 3.12% on 3 November , which pushed the yield difference, or spread, with German securities to 133 basis points, the most since the euro was introduced in 1999.
France introduces further austerity measures
November 23, 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.