France’s centre-right government has announced an unexpectedly big package of budget savings as it seeks to counter fears that it could be sucked into the eurozone debt crisis.

Presenting the €65bn set of tax increases and spending cuts to be spread over five years, François Fillon, prime minister, said that the time had come to “protect the French from the grave difficulties experienced by many European countries”.

“Our citizens are aware of the risks that deficits and debt pose to our life and our future. The word ‘default’ is not an abstract word,” Mr Fillon said.

The measures came just days after the G20 summit of leading global economies, hosted by France, failed to agree a comprehensive solution to the eurozone crisis. They reflect President Nicolas Sarkozy’s concern to bolster the country’s public finances and preserve its triple A credit rating before the presidential election next April.

The new package envisages an additional €7bn in savings next year and a further €11.6bn in 2013. The 2012 total contrasts sharply with an announcement in Germany on Sunday of a €6bn tax cut next year.

Companies with turnover above €250m will pay an extra 5 per cent tax in 2012 and 2013 and the reduced value added tax rate for restaurants and building renovation will be raised from 5.5 per cent to 7 per cent.

Mr Fillon stressed that the measures would enable France to eliminate its deficit in 2016 and stick to its aim of cutting public debt, set to peak at more than 87 per cent of GDP in 2012.

Tullia Bucco, economist at UniCredit, welcomed the measures. “This really aims at sending a strong message in terms of commitment to fiscal discipline,” she said. “Considering we are entering into an election period, I think the government really did a lot.”