The Straits Times
Published on Jan 04, 2013

France will take a few months to plan 2014 cuts: PM


PARIS (REUTERS) - France's Socialist government, battling to cut its fiscal deficit to below an European Union (EU) ceiling, will take the next few months to plan where spending cuts in 2014 will fall, Prime Minister Jean-Marc Ayrault said.

Laying out a six-month plan of action at the first cabinet meeting of 2013 on Thursday, Mr Ayrault said priorities were to revive growth, stem a rise in unemployment and identify where spending could be hacked back.

The Socialist government has promised 12.5 billion euros (S$20.2 billion) in public spending cuts next year to help fund a program of tax credits to companies, but analysts fear this will be difficult to achieve on top of a spending freeze this year.

"We will lay out the savings measures after the spring," Mr Ayrault told the cabinet meeting.