France to tax wealthy to service deficit

FRANCE’S SOCIALIST GOVERNMENT announced it intends to raise €7.2bn (£5.7bn) as it launched a huge one-off increase in wealth taxes in a bid to service its deficit, reports the Financial Times.

The supplementary 2012 budget was called to ensure the government’s attempts to reach its deficit target of 4.5% of GDP this year and was overwhelmingly skewed towards taxes on the rich and big business.

More increases are expected to be announced in the autumn, when the government is expected to source €33bn in savings to reduce the deficit to 3% of GDP.

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