France slashes growth hope as further cuts on cards

French prime minister Jean-Marc Ayrault has slashed his country’s official growth forecasts, paving the way for a slew of cuts next year that are bound to anger many after the new Socialist government promised to avoid austerity.

In response to a grim assessment of public finances by the state auditor on Monday, Mr Ayrault said the economy would grow 0.3% this year, less than the 0.7% predicted by the previous conservative government.

He also confirmed a 75% tax band would be imposed on annual income above €1m while promising that low-income and middle-class workers would be spared tax rises.