While the Socialist government of French President François Hollande unveiled a budget last week that included higher taxes on large corporations and a 75-percent tax bracket for the super-rich, there were also major reductions in public spending, marking a turn away from the kind of spending Hollande had promised during his campaign to help stimulate job creation. Hollande, it appears, is conceding at least in part that France cannot spend its way out of this recession.Lignet believes the new budget may spell doom for France due to the government’s overestimation of future growth and popular opposition to the budget cuts. Should Paris fail to meet the ambitious target to trim the deficit and the rising national debt, it could lose the top-notch credit ratings it has clung to despite its stagnant economy.