Sarko's First Budget Offers No Big Shakeups

Eschewing austerity, France set to run another huge deficit
By Jason Farago,  Newser Staff
Posted Sep 27, 2007 9:16 AM CDT
French president Nicolas Sarkozy, left, waves as he arrives with Prime Minister Francois Fillon at Strasbourg prefecture, eastern France, Friday Sept. 7, 2007, to join the weekly Cabinet meeting. France's...   (Associated Press)
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(Newser) – Nicolas Sarkozy presented his first budget to the French national assembly yesterday, but tax cuts have largely replaced the overhaul of the public sector he promised during his election campaign. Super-Sarko's plans to shake up the French economy have run aground, the Guardian reports: huge public debt, ballooning social security deficits, and a too-strong euro have left the government paralyzed.

Sarkozy's budget sans belt-tightening comes on the heels of France's prime minister, François Fillon, telling the papers that France is "bankrupt." Le Canard Enchaîné, France's muckraking political weekly, reports that Sarkozy is already looking to sack his friend and PM, saying, "He's pissing me off. I can't get rid of him straight away, but in May anything will be possible."