France unveils €20 billion business tax breaks to boost ailing economy

The French government announced on the 6 November 2012 it was to create €2bn worth of tax breaks for businesses as one of a series of budgetary measures aimed at boosting the country's flagging competitiveness.

Unveiling the measures, the French government said that it was adopting almost all of the 'shock' measures recommended in a report drawn up by Louis Gallois, one of the country's most prominent industrialists published on the 5 November 2012.

• Primary Source

France24, 6.11.12: France 'needs patriotic effort' to regain competitivity http://www.france24.com/en/20121105-france-french-government-set-ignore-review-calling-drastic-reforms-industry-economy

Report: PACTE POUR LA COMPÉTITIVITÉ DE L’INDUSTRIE FRANÇAISE (Chairman: Louis Gallois), November 2012 http://medias.lemonde.fr/mmpub/edt/doc/20121105/1786014_53da_rapport_de_louis_gallois_sur_la_competitivite.pdf

ESO: Background information: French ‘pigeons’ in flutter over tax rise http://www.europeansources.info/record/french-pigeons-in-flutter-over-tax-rise/

ESO: Background information: Hollande hits cautious note on labour costs http://www.europeansources.info/record/hollande-hits-cautious-note-on-labour-costs/

BBC News, 6.11.12: France to raise VAT to fund company tax breaks http://www.bbc.co.uk/news/business-20218792

IMF: Press Release, 29.10.12: France: 2012 Article IV Consultation--Concluding Statement http://www.imf.org/external/np/ms/2012/102912.htm

EUObserver, 06.11.12: IMF warns France on falling behind Italy and Spain http://euobserver.com/economic/118098

Les Echos, 12.11.12: The sick man of Europe is France http://www.presseurop.eu/en/content/article/3021901-sick-man-europe-france

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