The French budget minister says France and its eurozone partners are working on an “overhaul” of European treaties to help restore market confidence in their ability to reduce high state debt and deficits.

France proudly presented next year’s budget today as the first to cut spending since the Second World War, as it tries to convince nervous investors that it will get its debts under control.

PRESIDENT Nicolas Sarkozy ordered his finance and budget ministers tofind new ways to prune the public deficit, as markets fretted over France’s strained finances and banks following a US debt downgrade.

PRESIDENT Nicolas Sarkozy ordered his finance and budget ministers tofind new ways to prune the public deficit, as markets fretted over France’s strained finances and banks following a US debt downgrade.