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FRANCE
VAT cut paves way for cheaper restaurant bills
French restaurants are expected to cut prices on meals and soft drinks after the government slashed value added tax from 19.6% to a lowly 5.5%. The move, approved by the European Union, follows years of French lobbying in Brussels.
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In the French Papers

A daily look at some of the stories in the French papers.
ISRAEL
Sarkozy’s alleged comments on Lieberman spark controversy
Israeli Prime Minister Benjamin Netanyahu issued a statement defending his ultranationalist Foreign Minister Avigdor Lieberman (photo, at left) following Israeli media reports that French President Nicolas Sarkozy urged Netanyahu to fire Lieberman.
NUCLEAR POWER
Areva to raise capital, sell a subsidiary
French state-controlled nuclear giant Areva announced on Tuesday that it was opening its capital to new investors and would sell a subsidiary in order to raise money for investments. Unions have expressed concern at the plans.
PHARMACEUTICAL
Sanofi-Aventis to close and transfer four French sites
Pharmaceutical group Sanofi-Aventis announced on Tuesday that it would reorganise its R&D facilities in France by closing four sites and transferring them to larger centres. It also said it would launch a round of voluntary redundancies.
TERRORISM
Al Qaeda vows revenge for France's burqa warning
More than a week after French President Nicolas Sarkozy said the Islamic burqa was not welcome in France, a message allegedly posted by al Qaeda’s North African branch vowed of revenge against the country, according to a cyber security site.
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In the French Papers

A daily look at some of the stories in the French papers.
JUSTICE
Rai singer Cheb Mami arrested at a Paris airport
Franco-Algerian rai star Cheb Mami was arrested on Monday at a Paris airport, after arriving from Algeria. The singer is due in court on Thursday, where he is accused of forcing an ex-companion to attempt an abortion.
FRANCE
National Front in run-off to take northern French town hall
France's far-right National Front party, led by the controversial Jean-Marie le Pen and seconded by his daughter Marine (pictured), took 39% of the town council vote Sunday in the town of Henin-Beaumont.
FASHION
Chinese companies in talks to take over Pierre Cardin brand
According to a company official, French fashion giant Pierre Cardin is considering selling its brand to a group of Chinese companies. The deal could be completed within a month, said the company representative in China.
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