Tax rise in France

Francois Hollande, a new French president, has announced that tax rates for businesses and households with the highest income will be increased. French government expects to collect additional 7.2 billion EUR. Such policy is aimed to reduce budget deficit to 4.5% instead of previous 5.2% in 2011. GDP growth forecasts were also changed and now it is considered to increase by 0.3% this year and 1.2% over the next one.