French austerity package – higher taxes and cuts

Tougher times await France's inhabitants. The country's new government is proposing tax increases and cuts to get the country's economy back on track.

The goal for next year is to improve public finances by around 60 billion euros, approximately 700 billion kronor. This year, the budget deficit is expected to land at a high six percent of GDP.

40 billion euros will be recovered through expenditure reductions in the state budget, and 20 billion euros from increased revenue, mainly higher temporary taxes from the more affluent and from the corporate sector.