France's 'socialist budget' puts markets into reverse

on 28/09/2012 17:41:44

France has outlined details of its tough budget for next year.

It plans to save almost €40bn as it tries to reduce the deficit to 3% of GDP.

There will also be €20bn in extra taxes on the rich and businesses.

Meanwhile, European markets have gone into reverse gear after France's so-called 'socialist budget'.

Investors are also nervous about the results of an audit into Spain's banks, which was expected today but was not published before the markets closed.

The FTSE 100 closed down 37 points this evening.