French President Francois Hollande unveiled his first budget that heavily tightened spending and raised taxes on the rich.
The government plans to cut its budget deficit to 3 percent of gross domestic product next year from 4.5 percent in 2012. GDP is forecast to grow just 0.8 percent. The spending reduction is set to save EUR 10 billion.
Further, the government levied a 75 percent tax on earnings above EUR 1 million.
Elsewhere, Agence France Tresor said it will reduce bond auction for next year to EUR 170 billion from EUR 178 billion this year.
by RTT Staff Writer
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