Debt Crisis: Harsh austerity budget passed in France

[presence]

Disaster averted but only just, was the verdict on 2012. In a year described as "existential crisis" by many of Europe's leaders the European Union's single currency went to the brink.


Greece appeared as if it was headed for 1930s-style political and economic collapse as a technocrat "national unity" government headed for collapse in early 2012.

Amid a bank run and growing opposition to an EU-IMF austerity programme, imposed as the condition of a bail-out, it looked as if Greece would default, bringing down the euro.

http://www.telegraph.co.uk/news/worl...uncertain.html

[Acala]

Huh? Where did you see that France passed an austerity budget?

[Zippyjuan]

I didn't find it in the link above but this one does say their parliament did pass one: http://www.telegraph.co.uk/finance/d...r-20-2012.html

In an unwelcome Christmas present for the French, the contentious austerity budget unveiled by president Francois Hollande in September has clinched parliamentary approval after months of deliberation. President Francois Hollande's budget aims to cut €30bn, two thirds of which are set to come from tax hikes, including a 75pc levy on income over €1m - a measure which has seen French actor Gerard Depardieu revoke his citizenship in indignance

Just a quick check on what the figures would mean. Two thirds from new taxes- or $20 billion. That leaves $10 billion in budget cuts- out of $1.291 trillion in spending (less than one percent) and a $137 billion deficit. http://en.wikipedia.org/wiki/Budget_of_France