2024-04-10 07:49:25
France’s finance ministry will today raise its deficit target to 5-5.1 percent of gross domestic product (GDP), up from an initial target of 4.4 percent, financial publication Les Eco said, quoted by Reuters. and BTA. The reason for this is the rapid deterioration of state finances.
According to the financial publication, French President Emmanuel Macron and Finance Minister Bruno Le Maire are not of the same opinion on the issue. Le Maire is banking on bigger budget cuts to get public finances back on track
The goal of a budget deficit of 3 percent in 2027 remains in force, although according to a number of economists its achievement is unlikely, Lez Eco writes.
For 2025, France has set a target of a deficit of 4.1 percent, adjusted from the earlier 3.7 percent, the newspaper reported.
After decades of spending beyond its means, France will have to show in the coming weeks that it will avoid a crisis that could put its credit rating at risk.
Earlier this month, the government announced that the deficit at the end of 2023 was 5.5 percent of GDP, exceeding the target of 4.9 percent.
Several other EU countries, most notably Italy, also exceed the 3 percent limit.