Bruno Le Maire wants to reassure. While he was questioned about the slippage in the public deficit, the Minister of the Economy affirmed, Wednesday, on BFMTV, that the State had “ 3 billion euros in excess tax revenue » compared to its forecasts.
« I can already tell you that our tax revenues today are good. As I speak, we have 3 billion euros in excess tax revenues compared to what was forecast in May 2024. This is good news. “, he indicated.
A slippage due to Covid and inflation according to Le Maire
In 2023, the public deficit had slipped to 5.5% of GDP, more than expected by the government, which at the start of the year attributed this slippage to tax revenues of 21 billion euros lower than expected. last year.
“Bruno Le Maire is not credible on the 3% deficit in 2027”, Christian Eckert (former Secretary of State for the Budget)
« We had an accident. I readily admit it. In 2023, everyone has fallen on us. There was a revenue accident, we are at 5.5 (% of GDP) instead of being below 5 », admitted the minister on Wednesday, while France was singled out by the European Commission for its heavy public deficit. « We spent to protect against Covid and inflation, now (…) it is a time when we must restore public finances. I started doing it and I intend to continue in this direction,” he had also justified, on LCIJune 20.
20 billion euros in savings
Criticized for this slippage by his political opponents, the minister repeated that he was determined to reduce the deficit in the coming years.
« In 2024, we have made the necessary decisions to be at 5.1 (% of GDP). In 2025, we should be at 4.1% (…) in 2027, we will be at 3 “, within the limits provided by the European Commission, he added on Wednesday.
To do this, the executive has already presented its action plan. It plans a budgetary effort of an additional 20 billion euros in 2024, then another 20 billion in 2025, excluding any tax increase. A red line that he already repeated last week.
France in the sights of the EU
These media outings by the Minister of the Economy take place at a time when the European Commission is opening the way to procedures for excessive public deficits against seven EU countries, including France.
France’s excessive deficit: the hammer blow dealt by Brussels to the government
These countries, which also include Italy and Belgium, last year exceeded the limit set at 3% of gross domestic product (GDP) by the Stability Pact, which also limits debt to 60% of GDP. They will have to take corrective measures to comply with the European Union’s budgetary rules in the future, or face financial sanctions.
Formally, the European executive will propose to member states to open the procedures at a future meeting of EU finance ministers on July 16. These rules were put on hold after 2020 because of the economic crisis linked to Covid, then the war in Ukraine. They were reformed and reactivated this year.
France has been in an 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.
Bruno Le Maire once again tackles the left and the RN
The minister, who is not running in the legislative elections, also presented on Wednesday, BFMTVonce again like a scarecrow for the country’s finances ” the implementation of the program of the National Rally or the New Popular Front ».
« Either they are lying and they will not do what they said and they will save money on the backs of the French or will increase taxes to keep this objective below 3%. Or they are not lying and they will be, with figures to support it, above 7% deficit in the years to come. “, he estimated.
(With AFP)
