News Headline Summary

French government proposes company tax credits worth EUR 20bln over 3 years in competitiveness package

- France to cut government spending by EUR 10bln in 2014 and 2015.
- France is to start raising VAT starting Jan 1st 2014.
- French government to add EUR 10bln of extra taxes, two thirds if which will be in VAT sales tax.

Update details:

- This headline is in-line with overnight reports from French press which noted the French Government is considering raising VAT to 20% from 19.6% which could raise EUR 2.6bln and is to cut company taxes by EUR 20bln. These measures to increase competitiveness will cut public spending by an additional EUR 10bln. (Les Echos)

Print 10:12, 06 Nov 2012 - Economic commentary - Source: Newswires