News Summary: French budget tries to turn page

AP News
Posted: Sep 25, 2013 1:07 PM

BUDGET CUTS: The French says it will cut the deficit by nearly 18 billion euros ($24 billion), 14.8 billion euros of which will come from spending cuts and the rest from taxes, as it aims spur growth and hiring.

NO ONE'S HAPPY: Taxpayers are grumbling about a proposed modest tax increase. Economists are split on the merits of cutting spending now, when the recovery is still weak. And some note that a tax credit meant to boost hiring at companies is being paid for largely by higher sales taxes, which takes money directly out of shoppers' pockets.

PLAYING CATCH UP: In terms of reducing the deficit, the budget appears to be Paris' belated effort to fall in line with the rest of Europe's focus on cutting public spending, which makes up 57 percent of gross domestic product.