France poised to unveil budget heavy on taxes

Sep 28, 2012, 4:59 AM EDT

PARIS (AP) — Finance Minister Pierre Moscovici says that France's budget for next year will be "combat" on three fronts: against the financial crisis, against inequality and against the debt.

Moscovici will unveil the 2013 budget later Friday. It is seen as a test of whether Socialist President Francois Hollande is serious about reforming the country's economy.

But it is expected to be heavier on taxes than spending cuts. Moscovici promised on French radio station Europe-1 that it would reduce the government deficit to 3 percent of gross domestic product — in line with European rules — next year.

He said that France would not ask for an extension to meet that level.

He also promised the budget would restart growth in France. Data released Friday confirmed that the economy didn't grow at all in the second quarter.