Prime minister sets 3.0-percent growth target

23rd May 2007, Comments 0 comments

PARIS, May 23, 2007 (AFP) - French Prime Minister Francois Fillon said on Wednesday his government aimed to boost French growth to 3.0 percent using tax reforms to "shock" the economy into a faster track.

PARIS, May 23, 2007 (AFP) - French Prime Minister Francois Fillon said on Wednesday his government aimed to boost French growth to 3.0 percent using tax reforms to "shock" the economy into a faster track.

"We are going to propose a set of fiscal and financial measures designed to bring about a shock that will create growth," he told French radio Europe 1.

Fillon said the annual growth prediction used in the 2007 French budget, of between 2.25- and 2.5-percent of gross domestic product (GDP), was "not good compared to the average in other major countries.

"Our target is to reach 3.0 percent," he said, without specifying a time-frame.

President Nicolas Sarkozy's right-wing government pledges to move quickly on legislation to exempt overtime work from taxation, make mortgage interest payments tax deductible, and all but eliminate inheritance taxes.

It would also put a 50-percent cap on overall individual taxation.


Copyright AFP

SUbject: French news

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