France's President Wants to Trim Public Sector French President Francois Hollande is pledging to trim and simplify France's huge public sector and reform banks to try improving the lagging economy. The Socialist Hollande, who won election six months ago by campaigning against austerity, admitted cuts are needed in the public sector, which makes up more than half of the French economy. French President Francois Hollande leaves after laying a wreath, during the ceremony marking Armistice Day in Paris, Sunday Nov. 11, 2012. President Francois Hollande reviewed troops around Paris' iconic Arc de Triomphe and laid a wreath on the tomb of the unknown solider beneath the arch to commemorate France's war dead. (AP Photo/Gonzalo Fuentes, Pool) Close He said Tuesday that France "should be capable of doing better in spending less." He also says a law would be announced before the end of the year to split banks' retail activities from their investment activities. During a press conference, Hollande defended his term so far, which has seen his popularity fall. The unemployment rate stands around 10 percent and growth is zero, but Hollande insisted, "Decline is not our destiny."