France cuts growth forecast

Just weeks after being installed as the country’s new leader, French President, Francois Hollande has cut the nation’s growth outlook, with a slew of budget cuts set to follow.

After what Reuters described as a ‘grim assessment’ of public finances by Prime Minister Jean-Marc Ayrault, the French economy is now forecast to grow by 0.3% in 2012, compared with the 0.7% forecast earlier.

Typically, the new socialist government blamed the move on an over-estimated growth forecast by the previous conservative government under Nicolas Sarkozy.

And now an amended 2012 budget is due to be presented to the Cabinet apparently without seeking to cut spending or resorting to widespread austerity.

Well, good luck with that.