Tax cuts on businesses and a new public spending savings plan that will respect its commitments to the European Union without yielding to the austerity line. These are some of the objectives of the French government, announced by the new premier Manuel Valls in his first speech to Parliament.
Confirming its intention to cut the tax wedge on companies with a 30 billion plan between now and 2016, Valls announced the abolition of payroll taxes paid by companies to finance welfare from 1 January 2015 and the reduction of tax burdens on the lowest incomes as of the same date.
On the 50 billion spending cuts plan, Valls said: “Efforts will be shared by all. The state and its agencies will have the lion's share, with about 19 billion, 10 billion will come from health care, and another 10 billion from local governments. "I propose to reduce the administrative regions by half - continued the new prime minister - The government will propose a new regional map which will be introduced from 1 January 2017".
As for the path to reduce the deficit, which currently sees France not in line with the objectives agreed at the European level, Valls assured that Paris will respect its commitments, but will not uncritically subscribe to the penalty line.
