France to Cut Spending by 10 billion EUR

Interesting development as Francois Hollande dethroning of Sarkozy was built around anti-austerity and stimulus, but this is definitely a needed strategy if France wants to meet its deficit target.

France will cut state spending by 10 billion euros next year, excluding interest payments on its debt and pensions, as it strives to meet a deficit target of 3 percent of gross domestic product (GDP), President Francois Hollande said on Friday.

“Spending, excluding debt servicing and pensions, will be stabilized in nominal terms which will allow us to save more than 10 billion euros ($12.64 billion),” Hollande said in a speech at the state auditor’s offices.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza