France to trim income taxes for households, companies

France's finance minister has unveiled a plan to lower taxes for both households and companies.

Michel Sapin detailed on Friday the 1 billion euro ($ 1.1 billion) tax cut, which will affect about 5 million less well-off households.

He also decided to lower the corporate income tax for companies of less than 250 employees next year, as part of a 4-year plan to cut taxes for all businesses by 2020.

The government has promised to bring the budget deficit below 3 percent of annual gross domestic product by next year, as requested by the EU. The deficit was 3.5 percent in 2015, according to state statistics published this week.

France will hold a presidential election in April-May next year. On Thursday, President Francois Hollande positioned himself for a re-election bid.