France cuts 2011 growth prediction

France has reduced its economic growth forecast for 2011 by 0.5% to 2% following a meeting between President Sarkozy and top finance ministers.

In 2010, the French government expects to "meet of exceed" growth of 1.4%, the BBC reports. Sarkozy took the opportunity to reassure the public a reduction of the government deficit from 8% to 6% in 2011 is a "major priority" despite levels of growth next year. He also pledged once more his commitment to maintain current levels of VAT, income tax and tax on companies, but warned €10bn in tax breaks would be cut in the autumn. In order to meet his target of cutting the deficit from 8% to 3% of French GDP by 2012, Sarkozy must cut €100bn from public spending.