France 'looking for savings of €100bn by 2013'

21 June 2010

France is planning to make around €100 billion ($123 billion) worth of savings from its budget.

Claude Gueant, chief of staff to French president Nicolas Sarkozy, told the Financial Times that the government is looking to implement the first wave of public spending cuts as it seeks to reduce its deficit to three per cent by 2013.

He stated that a "serious and determined" three-and-a-half year spending plan is in the process of being drawn up and will be ready for publication in the autumn.

France has faced criticism for the optimism of its growth rate predictions which are helping to determine the scale of its deficit reduction plans.

It believes growth of 2.5 per cent can be achieved, which would provide around half the money it needs to find.

Another country set to lay out is deficit reduction plans shortly is the UK, with new chancellor George Osborne due to deliver his first Budget tomorrow (June 22nd 2010).

By Tony Aynsley

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