France News

Nicolas Sarkozy’s budget aims to boost France’s growth

Friday, 28 September 2007

Nicolas Sarkozy’s budget aims to boost France’s growth

President of France, Nicolas Sarkozy's first budget since assuming office has included measures aimed at increasing the country’s growth.

That French employers should be offered incentives to allow employees to work overtime, and that the high-income earners should have their taxes reduced, are included in the measures introduced.

Nicolas Sarkozy explained that these means would be able to be paid for by the higher overall tax receipts as a result of the growth being generated, even though just days ago the French Prime Minister Francois Fillon said that France was "bankrupt".

France has been under pressure from other countries in the European Union to cut its deficit and debt levels, however, experts warn that the new budget is not going to do much to help this.

Nicolas Sarkozy’s new French budget includes a package of about 9bn euros in tax cuts. This amount had been promised in Nicolas Sarkozy's election manifesto but the figure has been dropped from a previous estimate of 15bn euros that was forecast.

Comment on this article