France reduced its growth forecast for economy

France has also reduced the growth forecast for the current year to 1.75% from 2% previously. According to Fillon, huge debts contributed to the slowing global economy and in particular the European economy, reports Reuters. The French government is planning to cut budget expenditures by 11 billion euros in 2012 to reduce the budget deficit to 4.5% of GDP mark. Fillon also said that the French government plans to get 200 billion euros due to an exceptional tax of 3% of those whose income exceeds 500 thousand euros per year. The tax will apply until France has reached the level of fiscal deficit to 3 percent of GDP. The government expects to achieve the goal by 2013.