• France's news in English

French PM demands €5 billion spending cuts

AFP · 8 Mar 2013, 12:13

Published: 08 Mar 2013 12:13 GMT+01:00

Facebook Twitter Google+ reddit

Paris recently acknowledged that its forecast for 0.8-percent growth this year was out of reach, meaning its budget planning to reach the European Union deficit ceiling of 3.0 percent of output was no longer sufficient.

"In the state budget, we must identify a total of five billion euros in savings in 2014," the prime minister said in a statement .

"These savings will help balance the public accounts while ensuring the financing of measures we have identified to buttress the competitiveness of our economy, fight unemployment and cushion those who are the worst hit," he said.

Ayrault said the savings should come through structural reforms in each ministry, adding that talks would take place between ministries and the finance and budget ministers in March and April before their 2014 budgets were fixed.

Budget Minister Jerome Cahuzac recently said France would have to find six billion euros in extra revenues next year.

This year French ministries have been informed how much to cut spending in order for the government to generate 2.0 billion euros ($2.6 billion) in savings.

President Francois Hollande has underscored the need for "economies in all budgets" of the state agencies to allow for a balanced budget in 2017.

Story continues below…

Hollande has said that the government has so far put most of the effort to balance France's finances on increased taxes but that now the emphasis would have to switch to expenditure.

The European Commission has indicated that it may give France some slack in achieving deficit targets, and the IMF has recently warned EU countries that cutting deficits too fast was harming growth.

Facebook Twitter Google+ reddit

Your comments about this article

Today's headlines
France to scrap special prison wings for dangerous jihadists
Photo: AFP

The experiment has been ditched.

Refugee crisis
What rights do Calais migrants have in France?
Photo: AFP

Can the migrants work or claim social benefits or travel freely inside Europe?

Myth busting: Half of French adults are now overweight
A model at the Pulp Fiction fashion show in Paris that represents society's diverse spectrum . Photo: AFP

Hold on, aren't the French all meant to be finely toned specimens with not an ounce of fat on them?

France poised to send bulldozers into Calais Jungle
Photo: AFP

As hundreds of migrants leave, the bulldozers are set to tear down the sprawling Calais shanty town on Tuesday.

UK to spend €40 million on securing Calais border
Photo: AFP

Britain spending big on security in Calais.

Millionaire Riviera hotel boss kidnapped in broad daylight
The city of Nice where the millionaire was bundled into a car infront of shocked onlookers. Photo: AFP

The millionaire head of a luxury hotel in the French Riviera resort of Cannes was kidnapped in Nice in front of shocked onlookers in the middle of the day on Monday.

Where exactly in France are Calais migrants being sent?
Photo: AFP

Here's where the 8,000 migrants in Calais are heading.

The annoying questions only a half French, half British person can answer
Photo: Beery/Flickr/AFP

Being half French, half British is means you get asked a lot of questions (and some of them can be a little annoying.)

Migrants bussed out of Calais Jungle to all corners of France
All photos: AFP

Hundreds of migrants are being bussed across France on Monday ahead of the demolition of the Jungle camp.

The must-see French films of the millennium - Part One
A Prophet. Photo: YouTube Screengrab

Looking for something to watch?

The annoying questions only a half French, half Brit can answer
Sponsored Article
Last chance to vote absentee in the US elections
Forget Brangelina's chateau - here are nine others you've got to see
The must-see French films of the millennium - Part One
How life for expats in France has changed over the years
Why Toulouse is THE place to be in France right now
Video: New homage to Paris shows the 'real side' of city
The 'most dangerous' animals you can find in France
Swap London fogs for Paris frogs: France woos the Brits
Anger after presenter kisses woman's breasts on live TV
Is France finally set for a cold winter this year?
IN PICS: The story of the 'ghost Metro stations' of Paris
How to make France's 'most-loved' dish: Magret de Canard
Welcome to the flipside: 'I'm not living the dream in France'
Do the French really still eat frogs' legs?
French 'delicacies' foreigners really find hard to stomach
French are the 'world's most pessimistic' about the future
Why the French should not be gloomy about the future
This is the most useful French lesson you will ever have. How to get angry
Why is there a giant clitoris in a field in southern France?
French pastry wars: Pain au chocolat versus chocolatine
Countdown: The ten dishes the French love the most
Expats or immigrants in France: Is there a difference?
How the French reinvented dozens of English words
jobs available