News Summary: France's budget woes underestimated

AP News
Posted: May 11, 2012 2:04 PM
News Summary: France's budget woes underestimated

SARKOZY DOWNPLAYED: French President-elect Francois Hollande suggested Friday that the government of outgoing leader Nicolas Sarkozy underestimated the country's budget problems.

STICKING TO PLANS: Hollande said he wants a new audit of France's books. But he said that would not necessarily mean he has less room to maneuver after he takes office Tuesday. His plans include higher taxes on the rich, thousands of new teaching jobs and freezes on some government spending.

BLEAK OUTLOOK: New EU figures paint a bleak picture for France, with debt next year at 4.2 percent of gross domestic product. Hollande is targeting 3 percent.