France unveils €34bn cuts package

The French government unveiled a package of spending cuts and tax rises in a bid to reduce the deficit sharply in the face of pressure from its European partners and international investors.

The 2011 budget presented in parliament includes €40bn in spending cuts and extra revenue that Budget Minister Francois Baroin says will rein in the country’s deficit to 6% of gross domestic product next year from 7.7% in 2010.