- France has requested an extension to submit its plan for reducing its public finance deficit.
- France’s 2023 budget deficit stands at 5.5% of GDP, exceeding the EU’s 3% limit.
- Analysts doubt France will meet its target of reducing the deficit to below 3% by 2027.
Brussels/Paris, September 10 (FinanceFlashNews.com) – The European Commission confirmed it is negotiating with France to set a new deadline for submitting a plan to reduce its public finance deficit. France, one of seven EU member states facing excessive deficit procedures, was originally given until September 20 to outline its strategy for bringing the deficit in line with EU fiscal rules, which cap the deficit at 3% of GDP.
The Commission noted that EU regulations allow for a deadline extension under certain circumstances. France’s current deficit stands at 5.5% of GDP, and without significant fiscal cuts, it is projected to rise to 6.2% in 2024, according to Éric Coquerel, head of the French Parliament’s finance committee. Coquerel estimates that €60 billion in cuts will be needed to curb the rising deficit.
President Emmanuel Macron’s government is currently in transition following July’s inconclusive elections, with Michel Barnier appointed as the new prime minister. France has committed to reducing its deficit below 3% by 2027, but analysts are skeptical due to rising expenditures and falling tax revenues.
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Keywords: France, European Commission, budget deficit, public finances, EU fiscal rules, Emmanuel Macron, Michel Barnier
