The French Prime Minister, Francois Fillon announced that France will adopt new plan to cut the budget deficit by 7.0 billion euros in 2012 and 11.6 billions in 2013, in attempts to protect the nation's top credit rating and avert market tension as seen in Italy.

Fillion said that France aims to generate 65 billion euros of savings in the coming years to reach the goals in 2016 and reduce the public deficit gradually to zero.

The package includes a shift in the retirement age to 62 from 60 in 2017, and also a temporary 5% increase in taxes for corporations in addition to raising the discounted VAT sales tax to 7% from 5.5% with exception for some items.