Sarkozy's first budget unveiled in 'bankrupt' France

Sarkozy last week unveiled plans to overhaul pensions for some public employees and to streamline the civil service, the boldest moves yet in his reform agenda since taking office four months ago. Some 22,900 public servants who are retiring this year will not be replaced while the state is planning to sell off 600 million euros worth of real estate to generate revenue. Opposition Socialists say the nation's finances suffered a haemorrhage after parliament voted through a package of tax cuts promised by Sarkozy during his election campaign that are estimated to cost between 9 and 15 billion euros a year.