The 'world economy' in a nutshell
Despite the French president's campaign pledge to avoid implementing harsh austerity measures, a report says his government is in dire need of cutting jobs and implementing economic reforms to achieve a European deficit target.
According to a report by France's national audit office on Monday, Paris needs to come up with EUR 33 billion (USD 42 billi
on) in savings next year to meet its European deficit goal of three percent of gross domestic product.
This comes as auditors have already noted in an in-depth review that the state requires EUR 6-10 billion (USD 7.6-12.6 billion) in budget savings in 2012 to reach the deficit target of 4.4 percent of the GDP.
Officials have warned that "2013 is a crucial year" as France "is in the danger zone in terms of its economy and public finances."
The country's National Institute of Statistics and Economic Studies (INSEE) said on Friday that the EU member state's public debt had suffered a sharp rise of EUR 72.4 billion in the first quarter of the current year.
On Sunday, French Finance Minister Pierre Moscovici also noted that the country has cut its economic growth forecasts for 2012 and 2013 due to high public deficit.
During his election campaign, President Francois Hollande had promised to reduce the public debt, basing the pledge on a forecast of 0.5 percent growth for this year and 1.7 percent for 2013.
Sluggish growth rate and serious debt crisis has been troubling the country, which is considered to be one of the EU's economic powerhouses, since the global financial crisis started to affect the 27-nation bloc roughly five years ago.