Paris – The French cabinet approved Wednesday a budget for the year 2011 that aims to reduce the country’s budget deficit austerity from a projected 7.7 per cent of GDP this year to 2 per cent by the year 2014, the office of President Nicolas Sarkozy said.
The EU’s Growth and Stability Pact calls for the budget deficits of its member nations to be no higher than 3 per cent of GDP.
The government estimates the deficit austerity to total 152 billion euros at the end of 2010.
The budget’s projections are based on forecasts that see the French economy growing by 1.5 per cent this year, 2 per cent in 2011 and by 2.5 per cent in 2012.
* FRANCE:
– The budget aims to cut the public deficit austerity to 6 percent of gross domestic product in 2011 from 7.7 percent in 2010, in the first phase of a plan to trim the shortfall to the EU’s 3-percent ceiling in 2013, and 2 percent in 2014.
– Plans to raise the retirement age to 62 from 60 by 2018, make people work longer for a full pension and raise public sector contributions to private sector levels. — Top rate of income tax will be raised to 41 percent from 40 percent to help fund the pension regime.
* SPAIN:
– Confirmed in its budget on Sept. 24 it expected the public deficit to fall to 3.0 percent of GDP by 2013 from 9.3 percent of GDP in 2010.
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intermezzo | lia September 29, 2010 | 
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