Come Dine in France - It's got cheaper!

Since 1st July, TVA (french equivalent of VAT) rates at restaurants and cafés in France have been reduced from 19.6% to 5.5%. Establishments do not have to lower their prices as a result of the VAT drop but it is expected that more than 80% will.

French President Nicolas Sarkozy hopes that restaurants will drop their prices so that they will increase their business and will then be able to hire more employees and modernise their facilities.
liberation.fr - La TVA baisse, l’addition suit-elle?.