Le Maire Says Still Possible for France to Hit 2024 Deficit Goal
(Bloomberg) -- French caretaker Finance Minister Bruno Le Maire said it’s still possible for the country to meet its deficit-reduction targets for this year and 2027 if the next government quickly takes measures.
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According to recent calculations by the French Treasury, if no new savings measures are found, France’s budget deficit would rise to 5.6% of economic output this year from 5.5% in 2023, instead of narrowing to 5.1% as the government targeted in its latest long-term fiscal plans in April.
At a hearing of the National Assembly’s finance committee on Monday, Le Maire said his successor should cancel some of the €16.5 billion ($18.2 billion) of credits the outgoing government has set aside. He also called for a bill to change the current budget for 2024 and a meeting with regional authorities to curb an increase in their spending.
A revised budget for this year could include measures to put in place a suspended plan to tax share buybacks and the profits of energy firms, he said.
“The moment we are in, which requires clear thinking and courage, we can meet the 5.1% deficit in 2024,” Le Maire said. “We can and must meet the target of 3% in 2027, it’s just a question of political choices.”
Speaking alongside him, caretaker Budget Minister Thomas Cazenave added that the situation of France’s public finances “remains worrying.”
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