France will lower taxes in spite of Brussels

In an interview with Le Figaro, French Prime Minister Jean-Pierre Raffarin says he is determined to implement a three percent tax cut next year.

France however, will not manage to reduce public spending as the government intends to introduce big reforms in the next two years.

This move will certainly upset Brussels as eurozone ministers recommended to France last June that - due to France's high budget deficit - that any tax cuts must be followed by a complete reshaping and bette...