France unveiled a series of measures on Tuesday (6 November) aimed at making its economy more competitive.
Small businesses will get tax breaks worth €20 billion to boost investment, financed by a further €10bn cut in public spending and a rise in value-added tax (VAT) from 19.6% to 20% and an increase in reduced VAT rates.
Jean-Marc Ayrault, France's prime minister, said that the government needed to take “ambitious and courageous decisions”. His announcement came on the same day that the International Monetary Fund (IMF) issued a warning about France's economy.
In its annual assessment of France, the IMF said that the country's lack of competitiveness, particularly relative to other eurozone countries, threatened economic stability and growth and job creation.