Economic policy - between austerity and a Rocky Horror Show...

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The Prime Minister François Fillon has just announced a series of new austerity measures to produce a further 12 billion euros in savings for the government in 2011 and 2012. This follows a downgrading in the forecast for economic growth for both years. The measures include a new reduction in the benefits afforded by a variety of tax breaks and a temporary 3% tax on those with massive incomes. But, argues Laurent Mauduit, the overall package is just another sign of the government's incoherent and crazy economic policy. And one which he says risks tipping France back into recession.

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The Prime Minister François Fillon has just announced a series of new austerity measures to produce a further 12 billion euros in savings for the government in 2011 and 2012. This follows a downgrading in the forecast for economic growth for both years. The measures include a new reduction in the benefits afforded by a variety of tax breaks and a temporary 3% tax on those with massive incomes. But, argues Laurent Mauduit, the overall package is just another sign of the government's incoherent and crazy economic policy. And one which he says risks tipping France back into recession.