French Millionaires: We Should Pay More Tax

Some of the richest people in France have asked to pay more tax, as President Nicolas Sarkozy prepares to outline new measures to improve the nation's balance sheet.

L'Oreal heiress Liliane Bettencourt, the head of Air France and the boss of oil giant Total are among those who have signed a petition calling for a "special contribution" from the wealthy.

"When the public finance deficit and the prospects of a worsening state debt threaten the future of France and Europe and when the government is asking everybody for solidarity, it seems necessary for us to contribute," the signatories said.

It follows an announcement from US billionaire Warren Buffett that he should be paying higher taxes in an effort to cut the US deficit.

Mr Sarkozy is understood to be planning to end some tax exemptions that benefit the wealthy as he tries to raise up to 10 billion euros in extra revenue in the 2012 budget.

It follows a rocky few weeks on European stock markets that have highlighted concerns over French public finances.

Weak second-quarter economic growth, together with Standard & Poor's US credit rating downgrade have convinced the French government it needs to act more urgently to protect its AAA rating.

Elsewhere in the eurozone, Greece has been dealt a fresh blow as the interest it pays on its debt soared to its highest level since the euro's launch in 1999.

The yield on Greek two-year government bonds jumped to 42%.

Meanwhile in Spain, finance minister Elena Salgado clarified details of a new debt cap designed to make it illegal for Spanish governments to borrow at unsustainable levels.

A constitutional amendment will allow only a very small budget deficit in years of "normal" economic growth, but will let future governments borrow more when stimulus measures are needed.