Sarkozy Plans Biggest French Deficit Cut in Decades
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President Nicolas Sarkozy’s government outlined France’s biggest budget-deficit cut in two decades to calm investor concerns and protect its top credit rating.
The government shortfall will drop to 92 billion euros ($125 billion), or 6 percent of gross domestic product, next year from 152 billion euros, or 7.7 percent, the Budget Ministry said today. The reduction stems mainly from the end of recession-fighting stimulus and one-time investments. Tax revenue and spending will remain virtually unchanged.