PARIS, April 8 Manuel Valls used his first
speech to parliament as France's prime minister on Tuesday to
announce corporation tax cuts and outline public spending
savings, saying Paris would respect EU budget commitments while
Confirming an expected package of 30 billion euros ($41.23
billion) in payroll tax cuts on companies by 2016, Valls said
the so-called "C3S" tax on companies would be scrapped by the
same date, handing a total six billion euros back to companies.
An existing surtax on the main corporation tax would be
abolished in 2016 and the standard rate of corporation tax be
cut to 28 percent from 33 percent by 2020, he said, adding that
an initial reduction would take place in 2016.
On the public spending side, Valls said central government
would bear around 19 billion euros of the total 50 billion euros
in savings to be achieved by 2017, with local authorities and
the health insurance fund each saving 10 billion euros.
Valls said France wanted to respect its promises to the
European Union to bring down its public deficit but would not go
down the path of austerity.
"We will explain that to our European partners," he said.
($1 = 0.7277 Euros)
(Reporting by Mark John; Editing by Paul Taylor)