France has pledged to bring its public deficit below the European Union’s limit of 3% of GDP by 2027, according to Finance Minister Bruno Le Maire. Speaking to reporters in Luxembourg on Friday, Le Maire emphasized the government’s determination to restore sound public finances after the EU reprimanded Paris for breaching budget rules.
“We have to come back to sound public finances and count on my total determination,” Le Maire stated. “We will stick to the same path with the view to get under the three percent by 2027.”
The commitment follows the European Commission’s announcement on Wednesday that it intends to launch a “deficit-based excessive deficit procedure” in July for seven countries, including France, Belgium, Italy, Hungary, Malta, Poland, and Slovakia. All have deficits exceeding the EU threshold of 3%, with France’s deficit reaching 5.5% last year.
Under the EU’s fiscal rules, member states are required to maintain a deficit no higher than 3% of their national output and keep public debt below 60% of GDP. The rules aim to ensure fiscal responsibility and stability within the bloc.
Le Maire’s assurances signal France’s commitment to fiscal consolidation amid pressures to comply with EU regulations. The government’s plan to reduce the deficit is expected to involve a combination of spending cuts and measures to boost economic growth.
Reference(s):
cgtn.com
