per-cent figure had looked optimistic since the release earlier this month of second-quarter figures, showing gross domestic product showed zero growth between March and June, down from 0.9 per cent in the first quarter. The slowdown in growth sparked concern about France's ability to rein in its enormous budget deficit and hang onto its coveted AAA credit rating. This year, the government is aiming for a 5.7 per cent deficit, falling to 4.6 per cent in 2012 and 3 per cent - the eurozone limit - in 2013. Slower growth means reduced government tax receipts, making it more difficult to bridge the difference between spending and revenue. Sarkozy broke off his holidays and returned to Paris in mid-August to reassure markets the government would stick to the deficit reduction targets, come what may. Meeting the target will require France to come up with between 3 and 4 billion dollars in extra revenue or in savings this year, and about 10 billion euros in 2012, Le Figaro newspaper reported. Fillon is expected to announce a raft of measures to find those funds, including scrapping some of the around 75 billion euros awarded in tax breaks each year and introducing a new tax on the rich, Le Figaro reported. Such a tax would be a climbdown for the conservative Sarkozy, who has repeatedly promised not to raise taxes.
