Hollande vows to tax rich and cut deficit

Published on 08/09/2012 00:00

French Socialist president François Hollande yesterday said he would press ahead with spending cuts and tax reforms.

Elected in May on a pledge to curb unemployment and tax the rich, Mr Hollande said a stagnant economy made it crucial for France to stick to a target of cutting the deficit to 3 per cent of gross domestic product (GDP) next year. He also said by holding state spending steady in nominal terms next year – excluding debt servicing and pension payments – his government would save €10 billion (£8bn).

However, that would go just one-third of the way towards the more than €30bn (£24bn) in savings needed to hit next year’s deficit target – the first milestone toward balancing the budget before his five-year term ends.