LOS ANGELES, CA (Catholic Online) - France wishes to avoid the financial market pressure troubling other major eurozone economies such as Italy and Greece.

"The time has come to adjust France's efforts. With the president, we have only one goal: to protect the French people from the serious difficulties that many European countries are now facing," Francois Fillon, the French prime minister said.

"I believe that our citizens are now aware of the risks to our livelihoods and futures caused by deficits and debt. Bankruptcy is no longer an abstract term. Our financial, economic and social sovereignty require prolonged collective efforts and even some sacrifices."

"I want to tell the French people that the budgetary and fiscal efforts that we undertake today are a choice we make for the country and for generations to come."

French President Nicolas Sarkozy currently suffers from low approval ratings, The plan will hopefully bolster his re-election efforts as he seeks a second term.

The Sarkozy government says extra savings are urgently needed to keep France's finances under control, since it cut its growth forecast for next year to one per cent from 1.75 per cent last week.

The new measures follow August's 12-billion euro deficit-cutting package that raised taxes on the rich and closed tax loopholes.

Fillon discussed specific budget cuts and tax increases at a press conference, including a rise in the value added tax (VAT) paid on many goods and services from 5.5 per cent to 7.0 per cent and a temporary rise in corporate taxes paid by large companies by five per cent.

Francois Hollande, widely believed to be the Socialists' presidential candidate and Sarkozy's main rival in next year's election, says that raising the VAT rate so soon after lowering it would be "the proof of inconstancy, political incoherence."

Fillon also confirmed on Monday that France's retirement age would be increased from 60 to 62 by 2017, rather than 2018 as previously announced, drawing criticism from labor unions.

Jean-Claude Mailly, head of the French General Confederation of Labor, said that accelerating the pace of pension reform  would be "significant and provocative."

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