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French Government Plans Business Tax Breaks To Jump-Start Economy

France's government has promised €20 billion ($25 billion) in tax credits to businesses as part a "competitiveness pact" that it hopes will spark innovation and lower unemployment—but falls short of calls in a recent report for a "shock" to the economy.

The announcement of the plan Tuesday came a day after a government-commissioned report by Louis Gallois, former head of Airbus parent EADS, which said that the country's ailing economy needed a big kick to stay globally competitive.

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