European Union economy chief Paolo Gentiloni on Monday, October 7, welcomed his “promising” discussions about France’s budget with French Finance Minister Antoine Armand as Paris aims to rein in spending and bring down its deficit.
“We all acknowledge the difficulties, but we are already discussing at a technical level with the French authorities, with the new government, about the draft budget and especially about the fiscal mid-term plan,” Gentiloni told reporters in Luxembourg.
Armand had earlier vowed that France’s budget for 2025 will be “fully” in line with the EU’s new spending rules. Brussels has already rebuked France for breaking budget rules, placing the country in a formal procedure in July because its deficit is above 3%. France must submit a plan to reduce its public deficit, but Paris obtained a delay after a new government had to be appointed following snap elections.
The new minister will present the national budget on Thursday, which Paris hopes will tackle France’s “colossal” debt through spending cuts and new taxes.
Read more Subscribers only French government promises €40 billion in spending cuts in 2025
“We have prepared a budget to strengthen the country’s financial and national sovereignty,” Armand said during a media briefing, adding that respecting EU rules is “a question of international credibility.”
France is looking to improve its financial situation by some €60 billion in 2025 in the hope of bringing the public sector deficit to 5% of gross domestic product (GDP), from an estimated 6.1% this year.
Armand was bullish about France’s push to reduce the deficit below EU rules. “Our objective is to bring our deficit below the 3% mark by 2029,” he said, which is two years longer than his predecessor, Bruno Le Maire, had promised earlier in 2024.
He reiterated France’s determination to get the deficit down to 5% next year. “The prime minister has given me an extremely clear mandate: to defend French and European interests in the world in economic and financial matters,” Armand said.
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The minister will head to Luxembourg later on Monday for a meeting with his counterparts in the eurozone to deliver a presentation about France’s policy priorities.
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Publish date : 2024-10-07 05:10:00
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