France unveils tough budget, Spain's Rajoy wins time

France unveiled an austerity budget that would tax business and the super rich, but a report showing Spain's banks needed a manageable 59 billion euros in new funds bought time for Prime Minister Mariano Rajoy as he seeks to avoid a bailout.

Socialist President Francois Hollande's 2013 budget amounts to France's toughest belt-tightening for 30 years as the debt crisis takes its toll on the euro zone.

The package aims to narrow France's deficit to 3.0 percent of national output next year from 4.5 percent this year, bringing in 30 billion euros ($39 billion) for the treasury.

But the budget dismayed business by opting for tax hikes -- including a 75 percent tax on those earning over one million euros a year -- by holding public spending and not cutting government jobs.

Read Full Article from Reuters

- Posted: 2012-09-28 13:57:26

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