News / Europe

France Unveils Tough Austerity Plan

French President Nicolas Sarkozy at G20 summit in Cannes, Nov. 3, 2011.
French President Nicolas Sarkozy at G20 summit in Cannes, Nov. 3, 2011.
Lisa Bryant

The French government unveiled tough new austerity measures Monday as fears grow that Europe's fiscal problems may touch new members of the 17-nation eurozone.

French Prime Minister Francois Fillon warned that billions of euros in spending cuts and tax hikes amount to some of the toughest in more than half a century, as he unveiled them on Monday.

Fillon said the word "bankruptcy" was no longer an abstract term at a press conference where he unveiled the measures. He said France's economic, financial and social sovereignty demanded collective effort and even some sacrifices.

The plan includes raising the official retirement age to 62 by 2017 -- a year earlier than expected. Other measures include raising value-added and business taxes, with an overall goal of eliminating the country's budget deficit by 2016.

Coming six months ahead of presidential elections, the plan is likely to further erode French President Nicolas Sarkozy's already record-low popularity ratings.

The main opposition Socialist Party was swift to criticize the cuts along with union leaders. Force Ouvriere Union leader Jean-Claude Mailly slammed the austerity plan for hurting ordinary taxpayers. What France and other European countries need isn't more austerity, he said, but economic growth.

That sentiment is shared by analysts like Simon Tilford, chief economist at the Center for European Reform in London.

"The [French] recovery has already ground to a halt and it's sliding back into a recession," he said. "That is not the time that any government should be cutting spending. All that risks doing is pushing the economy further into recession."

The austerity measures come as neighboring Italy threatens to become the latest victim of the spreading eurozone crisis.

"It's not beyond the realms of possibility that in a few months time France could find itself in a similar position to the one in which Italy finds itself now," said Tilford.

France's belt tightening takes place just days after President Sarkozy presided over a G20 summit in Cannes dominated by the European debt problems -- with Greece and Italy on the front lines of the crisis.

You May Like

Sydney Hostage-taker Failed to Manipulate Social Media

Gunman forced captives to use personal Facebook, YouTube accounts to issue his demands; online community helped flag messages, urged others not to share them More

UN Seeks $8.4 Billion to Help War-Hit Syrians

Effort aimed at helping Syrians displaced within their own country and those who've fled to neighboring ones More

Who Are the Pakistani Taliban?

It's an umbrella group of militant organizations whose objective is enforcement of Sharia in Pakistan 'whether through peace or war' More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Will Pakistan School Shooting Galvanize Pakistan Against Extremism?i
X
Ayesha Tanzeem
December 17, 2014 11:54 AM
The attack on a military school in Pakistan’s northwest city of Peshawar left 141 dead, including 132 children. Strong statements of condemnation poured in from across the world. The country announced three days of mourning, and the leadership, both political and military, promised retribution. VOA's Ayesha Tanzeem looks at how likely the Pakistani government is to clamp down on all extremist groups.
Video

Video Will Pakistan School Shooting Galvanize Pakistan Against Extremism?

The attack on a military school in Pakistan’s northwest city of Peshawar left 141 dead, including 132 children. Strong statements of condemnation poured in from across the world. The country announced three days of mourning, and the leadership, both political and military, promised retribution. VOA's Ayesha Tanzeem looks at how likely the Pakistani government is to clamp down on all extremist groups.
Video

Video ‘Anti-Islamization’ Marches Increase Tensions In Germany

Anti-immigrant rallies in Germany have been building in recent weeks, peaking Monday night in the city of Dresden where tens of thousands of people turned out to demonstrate against what they call the ‘Islamization’ of the West. Germany has offered asylum to more Syrian refugees than any other country, and this appears to have set off the protests. Henry Ridgwell reports from London.
Video

Video Aceh Rebuilt Decade After Tsunami, But Scars Remain

On December 26, 2004 there was an earthquake in the Indian Ocean so powerful it caused the Earth’s axis to wobble a few centimeters. Onshore on the island of Sumatra, the resulting tsunami was devastating. A decade later, VOA Correspondent Steve Herman reports from Banda Aceh, Indonesia, where although there is little remaining evidence of the physical devastation, the psychological scars among survivors remain.
Video

Video Refugees Living in Kenya Long for Peace in the Home Countries

Kenya is host to numerous refugees seeking safe haven from conflict. Immigrants from Somalia face challenges in their new lives in Kenya. Ahead of International Migrants Day (December 18) Lenny Ruvaga has more for VOA News from the Kenyan capital.
Video

Video Turkey's Authoritarianism Dismays Western Allies

The Turkish government has been defiant in the face of criticism at home and abroad for its raids targeting opposition media. The European Union on Monday expressed dismay after President Recep Tayyip Erdogan lashed out at Brussels for criticizing his government's action. Turkey's bid to be considered for EU membership has been on hold while critics accuse the NATO ally of increasingly authoritarian rule. Zlatica Hoke reports.
Video

Video US-China Year in Review: Hong Kong to Climate Change

The United States is pushing for a code of conduct to resolve territorial disputes in the South China Sea as it works to improve commercial ties with Beijing. VOA State Department correspondent Scott Stearns reports on a year of U.S. policy toward China from Hong Kong to climate change.
Video

Video Japanese Leader’s Election Win Raises Potential for Conflict with Neighbors

Japan’s Prime Minister Shinzo Abe and his allies easily won a two-thirds majority in parliament Sunday, even though the country has slipped into recession under his conservative policies. VOA’s Brian Padden reports from Seoul, that the prime minister’s victory will empower him to continue economic reforms but also pursue a nationalist agenda that will likely increase tensions with Japan’s neighbors.
Video

Video Nuba Mountain Families Hide in Caves to Escape Aerial Bombings

Despite ongoing peace talks between Sudan's government and the rebel Sudan People’s Liberation Movement-North, or SPLM-N, daily aerial attacks continue in South Kordofan province’s Nuba Mountains. Adam Bailes was there and reports for VOA that government forces are targeting civilian areas, rather than military positions, with their daily bombardments.

All About America

AppleAndroid