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public debt


The French government has revealed the country’s public debt will hit a record 95.1% of GDP in 2014, above previous estimates, and up from 93.4% in 2013.

The figure was revealed as the country unveiled its budget for next year.

The debt should fall back in 2015, and repeated its aim to bring the public deficit below 3% that year, the EU’s deadline for doing so.

The government also said there will be some tax increases for households, but other tax reductions for businesses.

In addition, the budget focuses on tightening public spending, with some 15 billion euros in savings planned, as part of a plan to cut some 18 billion euros off the deficit.

France public debt will hit a record 95.1 percent of GDP in 2014

France public debt will hit a record 95.1 percent of GDP in 2014

Debt servicing costs will rise to 46.7 billion euros, compared with 45 billion euros in 2013.

The 2014 budget is based on a growth forecast of 0.9%, lowered from a previous 1.2% forecast, with just 0.1% in growth forecast for this year.

But an economist has warned that next year’s growth figure was no cause for optimism.

“We can’t talk about a recovery as long as economic growth is around 1%,” said Eric Heyer, an economist with the French Observatory for Economic Forecasts.

“Since today, we produce less than five years ago, we are still in recession. That’s the real definition of a recession.

“The real rebound will be when we have a production level well above 2007 and when the economy has started to create jobs again. That’s not in the government’s scenario.”

In other measures, there will be a change in corporate tax policy, with a new levy being introduced based on operating profits.

The much-heralded 75% tax rate on salaries of more than 1 million euros a year will be introduced.

However, this tax will be paid by firms rather than employees.

France is the eurozone’s second largest economy after Germany.

Meanwhile, France will issue 174 billion euros in medium and long-term debt in 2014, compared with an estimated 169 billion euros this year.

France’s Prime Minister Jean-Marc Ayrault has said that 9 out of 10 citizens will not see their income taxes rise in the new budget.

He has confirmed that there is to be a new 75% tax rate for people earning more than 1 million euros ($1.3 million) a year.

Jean-Marc Ayrault has not yet detailed how much taxes will rise for the rest of the top 10%.

It is one of the key policies in what he called “a courageous, responsible budget – a budget of conquest”.

France’s Prime Minister Jean-Marc Ayrault has said that 9 out of 10 citizens will not see their income taxes rise in the new budget

France’s Prime Minister Jean-Marc Ayrault has said that 9 out of 10 citizens will not see their income taxes rise in the new budget

The government’s priorities were young people, training and cutting 10 billion euros from its spending, he said. This would demand an effort but would be fair, he added.

Official figures on Friday showed that French public debt had hit 91% of GDP between April and June this year.

It was 89.3% at the end of March, which was still well above the eurozone limit of 60%.

Jean-Marc Ayrault pointed out that debt had grown by 30% of GDP in the past five years and that the debt threatened future generations.

He also said that the budget would encourage small and medium businesses and that taking risks would also be encouraged.

In its first budget, the Socialist government repeated its promise to cut the annual deficit to the eurozone limit of 3% of GDP next year.

The deficit this year is expected to be 83.6 billion euros, which is 4.5% of GDP.

Jean-Marc Ayrault said that France was strong when it set itself ambitious targets.

But some analysts said that the targets were too ambitious because they assumed too much growth for the coming years.

They said that tax increases and spending cuts would make it difficult to achieve the 0.8% growth in 2013 and 2.0% growth in 2014 that are predicted by the budget.