International Headlines and Stories

The first official figures on the 2011 budget, presented on Wednesday morning in the Council of Ministers, have fallen. Features a budget measure that is intended rigorous, the movement of the plane on tax loopholes will rise eventually to 9.4 billion euros in 2011 and 2.1 billion in 2012. The effort will continue in 2013 and 2014, with cuts of 3 billion per year in tax loopholes.

Businesses will bear 63% of the tax burden, according to ministry figures. The rest (37%) is borne by households. In 2012, this balance will change for companies, who will inherit only a 52% load.

"Triple play" and insurance

Among the measures introduced, the abolition of the reduced VAT rate on offers "triple play" will bring 550 million euros in 2011. Measures Concerning the insurance will reap 3.75 billion euros in 2011 and 3.55 billion in 2012.These funds will be used to finance the social debt.

On the other hand, the sampling rate required in 2012 to ascend its 2007 levels. The number of staff will also be reduced by 31,638 positions. A figure lower than that of 2010 (33,749).

"Understand the main steps, detailed by Le Figaro

Thanks in part to these measures, the budget deficit is expected to "an historic reduction" in 2011 to 92 billion euros, against 152 billion this year, according to the Budget Ministry. The government aims to reduce the deficit to 6% of gross domestic product in 2011 and, ultimately, to 3% of GDP in 2013.

Despite this effort on deficits, debt will continue to swell until 2012. Having already reached a record this year to 82.9% of GDP, it will amount to 86.2% in 2011 and peak at 87.4% in 2012. In 2013 and 2014, it will start to melt slowly.It should not board any time soon under the 60% set by the European Union.

Finally, the economic assumptions underlying the estimates of income and expenditure have been confirmed.

Photo credits: PHILIPPE WOJAZER / Reuters