French budget breaks promise on tax rises with €3m increase
Wednesday 25 September 2013
The French government has unveiled its 2014 budget which breaks an earlier promise to halt rising taxes for the French, weighed down by one of the highest tax burdens in the world.
Highlighting the gap between rhetoric and reality, the budget was officially described as “setting a course towards growth and jobs”. It laid down spending cuts of €15bn aimed at curbing the deficit, essentially from savings in the benefits and pensions sectors. But it also includes €3m in tax rises.
French households will be affected by a planned rise in VAT to a top rate of 20 per cent from. Experts are sceptical that credits put in place to boost hiring and spare lower-income earners from more tax pain would be sufficient to generate growth. French productivity is stagnating and predicted to reach only 0.8 per cent in 2014 according to the Organisation for Economic Co-operation and Development.
President François Hollande has acknowledged that the French are fed up with high taxes and last month promised a “fiscal pause” in 2014. Acknowledging the U-turn, Prime Minister Jean-Marc Ayrault accepted “full responsibility for having to raise taxes”. The budget revealed the country’s debt will rise to an unprecedented 95.1 per cent of GDP in 2014.
“The problem is that it’s a government which doesn’t like cutting the privileges of civil servants,” said the president of the Associated Taxpayers organisation, Alain Mathieu.
- 2 Exclusive: Abusers using spyware apps to monitor partners reaches 'epidemic proportions'
- 3 Andy Murray takes to Twitter to show off his Christmas jumper
- 5 Top 10 travel destinations for 2015: From Haiti and Alaska to Namibia and Iceland
PlayStation and Xbox hacked by Lizard Squad
Exclusive: Abusers using spyware apps to monitor partners reaches 'epidemic proportions'
Dublin court rules brain-dead pregnant mother's life support can be switched off
Margaret Thatcher 'expressed fears of Asian rising' at Anglo-Irish summit in 1984
The 'Black Museum': After 150 years, public set to see exhibits from police’s grisly crime museum
British actor Idris Elba cannot star as James Bond because he is black, says shock jock Rush Limbaugh
Rozanne Duncan: Ukip expels councillor for 'jaw-dropping' comments made in BBC TV interview
Germany anti-Islam protests: 17,000 march on Dresden against 'Islamification of the West'
Ukip member gets into Christmas spirit with Union Flag plea to Santa 'for our country back'
BBC director Danny Cohen: Rising UK antisemitism makes me feel more uncomfortable than ever
Katie Hopkins speaks out on childhood obesity: 'Parents of fat children should be prosecuted for child cruelty'
Not specified: Selby Jennings: VP/SVP Credit Quant Top tier investment bank i...
£40000 - £43000 per annum + benefits: Ashdown Group: Senior Marketing Executiv...
£40000 - £43000 per annum + benefits: Ashdown Group: An international organisa...
£25000 - £30000 per annum: Ashdown Group: Internal Recruiter -Rugby, Warwicksh...