France's Socialist government was set to announce 3 billion euros ($3.9 billion) in subsidy cuts and tax rebates on Wednesday as it seeks to rein in its public deficit. The move is part of a government "modernization" drive that will also see 201 measures introduced to cut back on red tape for individuals and businesses.

President Francois Hollande hailed the measures for "lowering costs for businesses and making life easier for our citizens," said government spokesperson Najat Vallaud-Belkacem.