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Budget squeeze: Digging France out of its fiscal hole The French government plans to subject the budget to a €60 billion belt-tightening drive next year in the hope of bringing the deficit down to 5 percent of GDP from an estimated more than 6 percent this year. Two-thirds of that sum are to come from spending cuts, and the rest from new taxes. Why does the country find itself in this fiscal hole? How will this new budget impact the country's economy? FRANCE 24's Charles Pellegrin talks to OFCE Economist François Geerolf.