Sarkozy moves to protect credit rating in massive budget deficit cuts

FRENCH President Nicolas Sarkozy’s government has outlined the country’s biggest budget deficit cut in two decades to calm investor concerns and protect its top credit rating.

The government shortfall will drop to €92 billion, or 6% of gross domestic product, next year from €152bn, or 7.7%, the Budget Ministry said yesterday.

The reduction stems mainly from the end of recession-fighting stimulus and one-time investments. Tax revenue and spending will remain virtually unchanged.