France cuts fuel prices to boost economy

The French government in office since May 2012 was said to be alarmed in late summer 2012 by increasingly gloomy indicators for the economy which had shown zero growth for the past three quarters, threatening to undermine the government's commitments to reduce the budget deficit in 2013 to 3% of gross national product without resorting to harsh austerity measures.

Article previews a meeting between French Prime Minister Jean-Marc Ayrault and business leaders on the 30 August 2012 when Mr Ayrault was due to open Medef’s annual summer conference.

Article also reported that the government had struck a deal with fuel suppliers to cut petrol and diesel prices by 6 euro cents a litre for September-November 2012 in a new effort to shore up flagging economic activity.

ESO: Background information: Hollande government responds to criticism http://www.europeansources.info/record/hollande-government-responds-to-criticism/

France24, 22.8.12: French PM vows to reduce record fuel prices http://www.france24.com/en/20120822-france-pm-ayrault-vows-reduce-regulate-record-fuel-pump-prices-petrol-car-socialist-party

France24, 30.8.12: Germany slams France over fuel tax cut http://www.france24.com/en/20120830-germany-round-french-fuel-tax-cut-hollande-petrol-diesel-unemployment-75%25-tax

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