Brussels Raises Red Flag on French Deficit, Hollande Blames Hidden Taxes of Sarkozy; France in Deep Trouble Already

"French president-elect François Hollande has launched a preemptive attack blaming outgoing president Nicolas Sarkozy for the huge budget deficit of France.

Given Hollande wants to tax millionaires 75%, I find it quite ironic that Hollande blames the problem on "hidden taxes" of Sarkozy.

Please consider Brussels raises alert over French deficit

 Brussels has raised a red flag on France’s budget deficit next year, in a warning over a €24bn fiscal shortfall that threatens to develop into a confrontation with Paris over austerity.

François Hollande, the French Socialist president-elect who has warned against over-reliance on austerity, said he had “anticipated” the deterioration in public finances and blamed “hidden taxes” left behind by the outgoing president Nicolas Sarkozy.

European Commission forecasts unveiled on Friday suggest France is expected to meet its deficit target of 4.5 per cent of gross domestic product in 2012, but its shortfall next year will be 4.2 per cent – well short of the 3 per cent EU target. Closing the 1.2 per cent gap would require savings or new taxes amounting to about €24bn.

at  http://globaleconomicanalysis.blogspot.com/2012/05/brussels-raises-red-flag-on-french.html