Americanexpatinfrance's Blog

With France facing a budget deficit and aiming to make cuts in spending while increasing revenue for the government (and implementing reforms such as the controversial retirement age raise…), it’s no surprise that the government has made this move. For economic background, here’s a brilliant guide from the Economist on Europe’s debt crisis.

For now it seems like France is taking the right actions for now, as its debt ratings from Moody’s remain in good condition. But there have been concerns and warnings that France could face long-term debt problems and thus a credit down-rating (thus undermining their ability to finance the state debt through treasury bonds). Thus it’s important that France continues to reform its system (such as raising the retirement age from 60, the lowest in Europe).

This is from Agence France Presse, taken from the Expatica website.

France to abolish 10 billion euros in tax breaks

President Nicolas Sarkozy announced Friday plans to abolish tax breaks worth 10 billion euros per year, as part of France’s plans to reduce its large public deficit.A statement issued after Sarkozy met his senior economic ministers said general taxation would not increase but that 10 billion euros (12.8 billion dollars) would be raised by abolishing various special tax regimes.

“Any resulting excess in revenues will be entirely assigned to reducing the deficit,” it said, promising to continue with policies of only replacing one retiring civil servant in two and of freezing local government funding. Sarkozy has vowed to maintain state spending at current levels, apart from interest payments and pensions, for the next three years as France battles to bring its ballooning deficit under control.

© 2010 AFP

This article was originally posted on Expatica’s website, written by renown travel author Rick Steves.

It’s targeted more towards travelers abroad but has relevant implications for expats as well, especially those recently settling in. Excerpts below. How do you think it is best to adapt to your new country?

…Once you figure out where the locals hang, check out where they live. Ride a city bus or subway into the suburbs, then wander through some neighbourhoods to see how residents live when they’re not wearing lederhosen and yodelling. Visit a supermarket. Make friends at the launderette. Or mill around area schools and universities, checking out the announcement boards and eating at the cafeteria. Be alert and a little bit snoopy. If you stumble onto a grade-school talent show, sit down and watch it. You can even visit a university’s English-language department and ask about hiring a student (who’s learning English) as a private guide.

Even if you’re not a regular churchgoer, consider attending a European worship service. An hour in a small-town church provides an unbeatable peek into the community, especially if you join them for coffee and cookies afterwards. I’ll never forget going to a little church on the south coast of Portugal one Easter. A tourist stood at the door videotaping the “colourful natives” (including me) shaking hands with the priest after the service. You can experience St. Peter’s by taking photographs, or you can do it by taking a seat at Mass…