The cost of a black coffee in France will drop over 10 per cent this summer, as restauranteurs across the country pass on the benefit of a VAT cut secured by President Nicolas Sarkozy after a seven year battle with the European Union.

Mr Sarkozy won approval from fellow EU members in March to reduce VAT on restaurant meals from 19.6 per cent to 5.5 per cent, but critics questioned whether restaurant owners would transmit the saving to consumers.