Bruno Le Maire commits to reducing the budget deficit to 3% of GDP in 2027

Bruno Le Maire commits to reducing the budget deficit to 3% of GDP in 2027
Bruno Le Maire commits to reducing the budget deficit to 3% of GDP in 2027

“We must restore the public accounts (…) This is exactly what we are doing” declared the Minister of the Economy in Luxembourg.

The French Minister of the Economy, Bruno Le Maire, promised on Friday to reduce the country’s public deficit to 3% of GDP in 2027 in the event of victory in the legislative elections, after being pinned down by Brussels on this subject. “We must restore the public accounts (…) This is exactly what we are doing and, depending on the decisions that will be taken by the French people, we will return below the 3% deficit in 2027”declared Bruno Le Maire, during a meeting of EU Finance Ministers in Luxembourg.

The European Commission opened the way on Wednesday to procedures for excessive public deficits against seven EU countries, including France. These countries, which also include Italy and Belgium, exceeded last year the limit set at 3% of gross domestic product (GDP) by the Stability Pact which also limits debt to 60% of GDP. These countries will have to take corrective measures to respect the budgetary rules of the European Union in the future, under penalty of financial sanctions.

The French minister justified the slippage by the pandemic in 2020 then the inflation crisis in the wake of the war in Ukraine from 2022. “We protected the French economy a lot during the Covid crisis and during inflation, and protected French households a lot. The result is that we are the first country in the euro zone to have regained our pre-crisis level of activity.he said.

“Obviously, we had to pay the price for that, which explains this excessive deficit procedure. Now we are at a time when we must restore public accounts to regain room for maneuver”, he continued. He attributed the fall in French financial markets and the rising cost of debt for France to spending promises from left-wing and far-right oppositions.

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“You have the programs put on the table by other parties and by the opposition with very significant public spending. This explains the reaction of the markets, the concerns expressed by the banking sector (…). These are the direct consequences of totally senseless and irresponsible economic and financial programs., he said. France, whose public deficit amounted to 5.5% of GDP last year and whose debt reached 110% of GDP, has been in excessive deficit procedure most of the time since the creation of the euro at the turn of the 2000s. However, it came out of it after getting back on track with its deficit in 2017.

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