France is bracing itself for its toughest budget announcement in three decades, as Francois Hollande puts his credibility on the line when he delivers the financial plans later today (September 28th).
This is the Socialist party leader's first full budget and he is expected to commit the country to a sharp reduction in the public deficit. He must secure €30 billion (£23.8 billion) in savings when he presents the package.
A planned 75 per cent tax rate is to be imposed on those with an annual income of more than €1 million has been protested by the country's business community, but Mr Hollande has indicated it may be lifted in two years.
Officials have suggested the budget targets will be met with two-thirds taxes, rather than the sort of strict austerity measures currently being imposed in Spain and Greece.
At 09:40 BST, the Cac 40 index in Paris was 0.2 per cent higher as investors await the announcement, with the benchmark rising to a value of 3448.1 points.
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