France to get belt-tightening budget

The French Government is facing financial challenges, claiming near insolvency but maintaining spending plans. The deficit remains unchanged, violating European rules. France aims to protect consumer spending, a key growth engine, by offering €15 billion in tax breaks, offset by pension streamlining and public sector cuts. Austerity measures may follow, with political strategies suggesting two budgets: one pre-election and another post-election focusing on austerity. Nicolas Sarkozy hopes for economic growth, but experts predict a downward revision.

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