French budget deficit seen at 3.4pc of GDP next year

France is expected to break the deficit ceiling after President Emmanuel Macron made concessions to anti-government protesters earlier this month, blowing a €10 billion (RM46.03 billion) hole in the budget. — Reuters pic
France is expected to break the deficit ceiling after President Emmanuel Macron made concessions to anti-government protesters earlier this month, blowing a €10 billion (RM46.03 billion) hole in the budget. — Reuters pic

PARIS, Dec 16 — France’s is likely to overshoot the European Union’s limit of 3 per cent of GDP next year and reach 3.4 per cent, National Assembly president Richard Ferrand told Sunday newspaper Le Journal du Dimanche.

France is expected to break the deficit ceiling after President Emmanuel Macron made concessions to anti-government protesters earlier this month, blowing a €10 billion (RM46.03 billion) hole in the budget.

“We take the responsibility of having a higher-than-expected deficit, probably at 3.4 per cent of gross national product. But it will be a cyclical peak, not a structural trajectory,” Ferrand was quoted as saying.

A spokesman with the French Economy ministry declined to comment.



Macron announced wage increases for the poorest workers and a tax cut for most pensioners on Monday, seeking to quell a near month-long revolt by protesters dubbed the “Yellow Vests” for the bright clothing they wear on demonstrations.

Before his announcements, France’s deficit was expected to hit 2.8 per cent in 2019.

EU economic commissioner Pierre Moscovici said on Thursday an expected overshoot of the deficit ceiling by France could be tolerated if it was temporary. — Reuters

Source: The Malay Mail Online





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