Hollande changes tack to tackle deficit

FRENCH President François Hollande has won cautious backing from Berlin, Brussels, and financial markets for a centrist reform push that could be his last chance to get the eurozone’s second largest economy motoring.

Ten days after his Jan 14 announcement, it is not clear how and when he will pull off the public spending and tax cuts at the heart of the plan. It is also uncertain whether French business will play ball with his goal of cutting unemployment.

Moreover, the new determination to cut taxes opens a whole new Pandora’s box: The question of whether Paris will bring its public deficit into line with EU targets next year as promised.