25 Sep 2013
France to raise taxes and tighten public spending in 2014
FXstreet.com (Barcelona) - The French government unveiled its budget for 2014, which includes tax increases and a reduction of government spending, aimed at bringing down the country´s excessive deficit and stimulating growth and employment.
According to estimates, France's deficit will be at 4.1% of GDP this year. It should reach 3.6% of GDP in 2014 before finally easing to the 3% level required by the Troika, two years later than initially pledged. Paris also expects national debt to rise to 95.1% of GDP in 2014, from 93.4% this year.
The budget, presented today by France's budget minister Bernard Cazeneuve and finance minister Pierre Moscovici, includes tax rises for households, which are supposed to bring 3 billion euros, and reductions in public spending which should bring 15 billion euros. Meanwhile, the tax burden on companies will be lowered in order to boost competitiveness and growth. A new corporate levy based on operating profits will also be introduced, in place of the previous annual flat tax.
The budget for next year is based on the growth outlook of 0.9%, cut from the previous projection of 1.2%. In 2013 the French economy is expected to expand by 0.1%.
According to estimates, France's deficit will be at 4.1% of GDP this year. It should reach 3.6% of GDP in 2014 before finally easing to the 3% level required by the Troika, two years later than initially pledged. Paris also expects national debt to rise to 95.1% of GDP in 2014, from 93.4% this year.
The budget, presented today by France's budget minister Bernard Cazeneuve and finance minister Pierre Moscovici, includes tax rises for households, which are supposed to bring 3 billion euros, and reductions in public spending which should bring 15 billion euros. Meanwhile, the tax burden on companies will be lowered in order to boost competitiveness and growth. A new corporate levy based on operating profits will also be introduced, in place of the previous annual flat tax.
The budget for next year is based on the growth outlook of 0.9%, cut from the previous projection of 1.2%. In 2013 the French economy is expected to expand by 0.1%.
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