France to tackle crushing debt, says French PM Ayrault

French PM Jean-Marc Ayrault has called on the French people to rally behind the government to tackle a “crushing” and “unprecedented” debt crisis.

He is outlining the new Socialist government’s plans in a keynote speech to parliament for the next five years. He confirmed those earning more than 1m euros (£800,000) would be taxed at 75%. The government is to hire more teachers and police and to create 150,000 state-aided jobs – part of electoral pledges of new President Francois Hollande. Mr Ayrault cut France’s economic growth forecasts, saying GDP was likely to grow 0.3% this year, rather than a budgeted 0.7%, and 1.2% in 2013 instead of a previously expected 1.75%, Reuters news agency reports. A public investment bank is also to be created before the end of this year to help industrial innovation. He added the proportion of nuclear power in the production of electricity would be reduced from 75% to 50% by 2025.