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French President Francois Hollande has announced a growth forecast of just 0.8 percent for 2013. He also says the "super rich" tax of 75 percent on earnings of over 1 million euros could last for around two years.
He said, "I have asked the government to establish the 2013 budget on a realistic growth forecast. It will be below 1 percent, most likely 0.8 percent. Because I don’t want anyone to think the state is preparing its budget with an assumption that would end up being wrong. The 75 percent contribution is part of the recovery agenda which I have set and I think we will achieve it in two years time. From then on, we won’t have to keep this contribution, but it’s very important to have it."
Economists had widely expected the government to lower its 2013 growth forecast in line with more pessimistic market estimates. Hollande is blaming a worse-than-expected economic slowdown for the new cuts. His Socialist government had previously predicted 1.2 percent growth for next year.
The 2013 budget is expected to be the most austere in 30 years, as France tries to hit a deficit target of 3 percent of gross domestic product. His immediate challenge will be to find 30 billion euros in savings. He has promised to turn the country’s stagnant economy around by 2014, and has set himself a year-end deadline to ready labor market reform. The pledge, made to the nation in a prime time television interview, comes four months into his presidency. Tumbling ratings have forced him to become more proactive on the economy.
中国公众网摘编：GAN JADE |
