French Finance Minister Bruno Le Maire insisted that France would slash the public deficit to below 3% of its GDP by 2027, on Friday, June 21, after the EU reprimanded Paris for breaking budget rules.
“We have to come back to sound public finances and count on my total determination,” Le Maire told reporters in Luxembourg. “We will stick to the same path with the view to get the 3%, to be under the 3% by 2027.”
France has been thrown into political uncertainty after President Emmanuel Macron called a snap election following his party’s crushing defeat against the far right this month.
Political parties on both sides of the spectrum have made abundant spending promises, which Le Maire blamed for the market volatility in France in recent days. “You have the programs put on the table by other parties and by the opposition with very significant public expenditures,” Le Maire said. “This explains the reaction of the markets, the worries expressed by the banking sector,” he said, adding: “This is the direct consequence of economic and financial programmes that are totally foolish and irresponsible.”
The European Commission on Wednesday said it would propose, in July, to launch “a deficit-based excessive deficit procedure” for Belgium, France, Italy, Hungary, Malta, Poland and Slovakia. All seven countries have deficits higher than 3%. France’s deficit was 5.5% last year.
There are two sacred objectives under the bloc’s rules: A state’s debt must not go higher than 60% of national output, with a deficit of no more than 3%.
Le Maire defended France’s policies, and pointed to “necessary decisions” taken in the last six months to cut public spending.
