France lowers deficit forecast, vows no new taxes

French finance minister Michel Sapin cut the country's deficit forecast for 2015 on 3 December 2014. This was a result of extra savings worth €3.6 billion announced by Mr Sapin in earlier in the year.

The extra money did not come from additional spending cuts but instead from lower interest expenses from servicing France's debts, a reduction in its contributions to the European Union's budget, and extra tax revenues from a clampdown on tax evasion and a new tax on second homes.

The European Commission had given in the previous week a three month stay of execution to France, with the EU executive warning that failure to implement further cuts could leave it with no alternative but to impose sanctions which could, theoretically, amount to 0.2 percent of GDP.

• Primary Source

ESO: Background information: France, Italy, Belgium to get extra three months on deficit and debt http://www.europeansources.info/record/eu-still-undecided-on-france-deficit-france-italy-belgium-to-get-extra-three-months-on-deficit-and-debt/

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