French State Needs 10 Billion Euros for 2012 Budget, AFP Reports

France’s government will need to find 10 billion euros ($12.7 billion) such as through new tax receipts to meet the 2012 budget, French Minister Alain Vidalies told Agence France-Presse.

“The fact that we have 10 billion euros missing at the end of June isn’t the responsibility of this government that has started working May 16,” Vidalies, the Minister for Relations with the Parliament, said in an interview with AFP, Le Monde daily and La Chaine Parlementaire today.

Vidalies said President Francois Hollande’s government, which is due to unveil a revised budget law next month, will seek to compensate the missing funds by scrapping tax breaks for tax payers, ending a tax holiday on labor charges and raising taxes for the wealthy people, AFP said.

Vidalies said the former government of Nicolas Sarkozy is responsible for the missing 10 billion euros. He said the French State Auditor will unveil a review of French public accounts at the end of the month and that it may confirm the report, AFP said.

To contact the reporter on this story: Helene Fouquet in Paris at hfouquet1@bloomberg.net

To contact the editor responsible for this story: James Hertling at jhertling@bloomberg.net

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