France unveils 'harshest budget in 30 years'

Image: François Hollande has described the 2013 plans as a 'combat budget'. Photograph: Andrew Gombert/EPA

guardian.co.uk - September 28th, 2012 - Kim Willsher

To the dismay of a swath of French bankers, business leaders and the wealthy, President François Hollande has remained true to his word and unveiled €20bn (£16bn) in new taxes, including a 75% "supertax" band that will hit the rich.

In what Hollande has described as France's harshest budget in 30 years, business and personal taxpayers were asked on Friday to make an "unprecedented effort" to slash the country's public spending deficit.

However, the Socialist government sidestepped swingeing cuts in public spending, including pensions and state salaries, in its 2013 budget, which aims to find €36.9bn in savings.

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