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A small business view of the French economy

28 September 2012 Last updated at 12:23 BST

French President Francois Hollande's government is due to present its first budget, and is expected to commit to a sharp reduction in the public deficit.

The budget will include measures to plug a 30bn euro (£23.8bn; $38.7bn) hole in the country's finances.

The last few months have already seen thousands of lay-offs by some of France's largest firms such as Peugeot, Air France and Carrefour - and confirmation this week that unemployment has passed the three million mark.

Our Europe business correspondent Nigel Cassidy reports from Northern France - where he has been hearing about the concerns of one small business.