President François Hollande’s attempt to cut France’s budget deficit with tax increases may have boomeranged.

FRENCH President Nicolas Sarkozy’s government has announced tax increases on the highest earners, capital gains, alcohol, tobacco, and sugared drinks to meet deficit targets and avoid the worst of the euro debt crisis.

FRENCH president Jacques Chirac said last night that he would press ahead with a contentious labour law that would make it easier to fire young workers - but offered some concessions in the hope of calming furious protests and strikes.

THE French economy will probably grow 2.3% this year, the fastest pace since 2000, the Paris-based national statistics office Insee said yesterday.