France poised to unveil a budget heavy on taxes

PARIS (AP) - French Finance Minister Pierre Moscovici says that France's budget for next year will be "combat" on three fronts: against the financial crisis, against inequality and against the debt.

Mr Moscovici will unveil the 2013 budget later on Friday. It is seen as a test of whether Socialist President Francois Hollande is serious about reforming the country's economy.

But it is expected to be heavier on taxes than spending cuts. Mr Moscovici promised on a French radio station that it would reduce the government deficit to 3 per cent of gross domestic product - in line with European rules - next year.

He said that France would not ask for an extension to meet that level.