French deputies back territorial reform but promised savings in doubt

French President Francois Hollande (L) attends a round table meeting with politician Andre Vallini and representatives of charity organisations during a day trip in Grenoble, January 23, 2013. REUTERS/Robert Pratta

PARIS (Reuters) - France's lower house of parliament on Tuesday narrowly passed a proposal for territorial reform that would cut the number of regions by nearly half, despite renewed doubts over a promised 10 billion euros (7.96 billion pounds) in annual savings.

The bill, which has not yet been finalised, would see France divided into 13 regions instead of the existing 22, which the government argues would be more cost-effective and result in savings as France tries to meet its deficit reduction goals.