France Imposes Fiscal Restraint

Who would have thought that the French could do what America cannot?

France Wednesday presented a 2011 budget relying on the end of stimulus measures and a freeze in the value of state spending to trim its bloated public deficit to the maximum 3% of gross domestic product allowed under euro-zone treaties by 2013.

 Finance Minister Christine Lagarde and Budget Minister Francois Baroin said the effort, which will cut the public deficit from a record 7.7% of GDP this year to 6% of GDP next year based on a projected 2% growth in output for 2011, is unprecedented.

"Never has such a deficit-reduction effort been undertaken."