Open

Coming up

Don't miss

Replay


LATEST SHOWS

AFRICA NEWS

Burkina Faso's army chief assumes power after president ousted

Read more

MEDIAWATCH

Action to end impunity for crimes against journalists

Read more

REPORTERS

USA - Mexico: A danger-ridden border

Read more

FRANCE IN FOCUS

Anger at death of young environmental protester

Read more

#TECH 24

Google's Cancer pill and Unicycle Solowheel

Read more

THE BUSINESS INTERVIEW

Hugues Pouget, Chocolate maker and CEO of Hugo & Victor

Read more

#THE 51%

Travelling safe

Read more

AFRICA NEWS

Burkina Faso's army announces dissolution of government and parliament

Read more

ENCORE!

Are camera phones, selfies and Instagram destroying photography?

Read more

Business

Deficit to hit record 8.5% of GDP in 2010

Text by NEWS WIRES

Latest update : 2009-09-30

The French government vowed to continue its stimulus effort as it unveiled its latest budget Wednesday. Public deficit will grow to a record 8.2% of GDP this year and 8.5% in 2010, by which time public debt will have reached 84% of national output.

AFP - France's public deficit will grow to a record 8.2 percent of GDP this year and 8.5 in 2010, according to the government's budget on Wednesday, based on expected growth of 0.75 percent next year.
  
France is edging out of a recession caused by last year's global financial collapse, but the government vowed to continue stimulus spending, and warned that deficit levels will not begin to fall until 2011.
  
Under the eurozone stability pact, member states are supposed to keep their deficits under three percent, but most are far above this as public spending explodes and tax revenue falls during the crisis.
  
France's public debt will soar to 84 percent of national output in 2010, up from 68 percent at the end of 2008 and well above the theoretical 60 percent limit set when France and its partners launched the single currency.
  
Among the fiscal measures announced in the budget were a "green" carbon tax on households and businesses, and cuts in local business taxes.
  

Date created : 2009-09-30

COMMENT(S)