Europe gives green light to France's budget plan

Meeting on Tuesday in Brussels, the finance ministers of the European Union validated the perspectives presented by Paris. Prime Minister François Bayrou announces significant savings to reduce the public deficit to 5.4% of GDP in 2025.

The finance ministers of the European Union, meeting on Tuesday January 21 in Brussels, formally validated France's budgetary plan, presented by the government of François Bayrou for 2025. A decision taken despite a reduction in the public deficit less significant than this. initially predicted by Michel Barnier, the former Prime Minister ousted by censorship.

This green light given to the new version of the text was expected after the positive opinion given by the European Commission. Not all European states benefit from the same leniency. Of Europe's 27 member countries, six – including Germany – are behind schedule and will need to be assessed later. The Bayrou government is therefore falling through the cracks… for now.

Brussels looked at what is called France's “multi-year budgetary trajectory”, that is to say France's capacities to resolve its problems over the coming years. It's a bit like a rating agency that evaluates and rates the country's ability to repay its debt. This multi-year trajectory of France seems credible in the eyes of European authorities. A reprieve, in a way, but which takes nothing away from the budgetary efforts that the government will have to make.

Without quantifying them in detail, ministry by ministry, position by position, Prime Minister François Bayrou announces significant savings to reduce the public deficit from 6% of GDP (national wealth) in 2024 to 5.4% in 2025. C It is less ambitious than what was planned by Michel Barnier, but François Bayrou is committed to increasing the effort afterwards to get back on track. This is what Brussels likes. “Paris maintains the level of ambition during the adjustment period”we can hear in the corridors of the Commission.

For the French Minister of the Economy, Éric Lombard, this is a very short-term relief, because everything remains to be done: build the 2025 budget, not penalize the purchasing power of the French, and not disrupt growth. with confiscatory taxation for entrepreneurs.