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'No question' of a rise in taxes
Budget minister Eric Woerth has emphasised there will be no tax increases to make up for the government’s budget deficit
BUDGET minister Eric Woerth has said taxes will not be increased despite the fall in government earnings.
He said any attempt to increase taxes would just make the economic crisis worse and repeated that there was no question of a rise.
Mr Woerth said the French budget deficit stood at €86.6 billion at the end of June, compared with €32.8 billion a year earlier because of increased government spending and reduced tax income due to the credit crunch.
Forecasts indicated that the end-of-year deficit would hit between €125 billion and €130 billion and Mr Woerth said this was in line with government estimates.
Other countries, he said, had higher deficits and the best response for France was to work towards increased growth and this would get finances back in line.