France expected to raise taxes, make cuts in 2013 budget French President Francois Hollande gives a press conference after a hight level event on the Sahel at the UN building on September 26,2012 during the UN General Assembly in New York. France's Socialist government is to announce its budget for 2013 President Francois Hollande is under pressure to boost growth and create jobs Prime Minister Jean-Marc Ayrault says a forecast growth rate of 0.8% is realistic France is burdened by rising unemployment and high debt levels (CNN) -- France will unveil its 2013 budget Friday, with President Francois Hollande's Socialist government expected to raise taxes and impose spending cuts in order to meet tough debt reduction targets. About 30 billion euros ($39 billion) in savings are needed to reach Hollande's ambitious target of reducing the deficit to 3% of gross domestic product by the end of 2013, from a forecast of 4.5% this year. The budget will be a test of confidence for Hollande, elected in May on a pro-growth and anti-austerity platform. Who is Francois Hollande? French ministers are meeting at the Elysee Palace Friday morning for talks ahead of the budget announcement. Figures released Friday by the country's national statistics institute reveal zero growth in France in the second quarter of 2012 compared with the first quarter, CNN affiliate BFM-TV reports. However, individual spending power increased slightly over the same period, after several quarters in which it declined. As the fifth largest economy in the world and the second largest in Europe, France's economic wellbeing is a matter of keen interest to global investors. It's also the United States' third-largest trading partner in Europe, after Germany and the United Kingdom, the U.S. State Department says. The French president is under pressure to reduce the national debt, boost growth and create new jobs, at the same time as seeking to avoid rousing public anger by making big cuts in public spending. Since taking office, he has already introduced a number of programs centered on growth and spending, rather than austerity, in a reversal of former President Nicolas Sarkozy's policies. Hollande has also vowed to slap a 75% levy on incomes higher than 1 million euros ($1.26 million) and raise taxes paid on the revenue of large fortunes. Speaking Thursday on public television, Prime Minister Jean-Marc Ayrault said the government was aware of the gravity of its mission, and that it has a long term plan for the country's future. He told the France 2 channel that nine out of 10 people would not be affected by planned tax increases for the wealthiest in France. Ayrault also defended the government's forecast 0.8% growth rate for 2013 as "realistic," rejecting doubts over the figure as "defeatist." He said it was important to set ambitious targets to tackle rising unemployment. The country's unemployment rate stood at 10.2% as at the end of June this year, according to the national statistics institute. France's budget announcement comes against a backdrop of unease in the 17-nation eurozone, where many governments are plagued by high debt and low growth. Neighboring Spain announced its own budget Thursday, outlining new spending cuts, tax increases and structural adjustments aimed at bringing down its huge deficit. The government's efforts have proven unpopular with many Spaniards, who have taken to the streets in large numbers to demonstrate against austerity measures.