France's Socialists take axe to welfare spending with planned cuts in 2015 budget

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France's Socialist government has detailed a 21 billion-euro ($26.5 billion) cost-cutting plan, the deepest-ever spending cuts in the country's modern history.

Presenting the 2015 budget Wednesday, Finance Minister Michel Sapin said, "These spending cuts are crucial to our credibility in the eyes of the French and Europeans, they'll be fully applied."

A significant part of the savings is to be made on France's generous welfare system. The government plans to cut 3.2 billion euros from health spending, and to cut family benefits by 700 million euros.

The government also plans to diminish the number of state employees next year and limit wage increases.

France's debt is now above two trillion euros and represents 95.1 percent of gross domestic product, according to statistics released Tuesday.