Three-year freeze on public spend

GOVERNMENT spending is to be frozen for three years to cut public debt.

France has pledged not to raise spending in 2011, 2012 or 2013 above that of 2010, however much inflation goes up.

The aim is to reduce the deficit to 3% of GDP compared to 8% at present.

According to President Sarkozy the government is going to save money by reducing the number of niches fiscales – ways in which people can invest money that enable them to reduce their tax.

A policy of not replacing one in every two civil servants retiring will be continued, with about 34,000 positions removed per year – however, unlike other EU countries, civil servants will not take a pay cut.

The government also aims to reign in expenses on state health insurance and to freeze money paid to local councils by central government.

President Sarkozy wants to make changes to the constitution forcing governments to take more responsibility for reducing debt – each incoming government would have to make a five-year pledge on deficit levels.