The Prime Minister presented measures for deficit reduction after a meeting held Wednesday, August 24 by the President of the Republic, and attended by the Ministers of the Economy, Budget, Labor and Solidarity, to address the global economic slowdown.
"The threshold of debt has now been crossed," the Prime Minister said, before announcing a budget plan to cut 1 billion euros($1.44 billion US) in 2011 and 11 billion euros($15.9 billion US) in 2012.
Minister Fillon reiterated that the structural reforms — of higher education, tripling of the research and development tax credit, pension reform, and smaller public spending — have allowed the government to preserve growth potential in the medium-term and to consolidate funds for social security spending in the long-term.
The policy objectives of the new plan include a contribution fund from highest revenues, a reduction of fiscal loopholes, and taxation on alcohol, tobacco and soft drinks.
"This is a rigorous policy which will allow France to remain sovereign on the economic and social fronts," the Prime Minister concluded.
See the full text (in French).