The French budget situation is “very serious”, Prime Minister Michel Barnier told AFP on Wednesday, adding that more information was needed to assess the “precise reality” of French public finances.
France was subject to formal proceedings for breaching European Union budget rules before Barnier became head of government earlier this month, while the Bank of France warned this week that an expected return to EU deficit rules in 2027 was “not realistic”.
France’s public sector deficit is expected to reach around 5.6 percent of GDP this year and more than 6 percent in 2025, in line with EU rules that set a deficit ceiling of 3 percent.
Barnier, appointed by President Emmanuel Macron after a lengthy tug-of-war following inconclusive parliamentary elections, has floated possible tax hikes to stabilise finances, but Macron has ruled out such a measure in his seven years in office.
“I discover that the country’s budgetary situation is very serious,” Barnier said in a statement to AFP.
“This situation requires more than just nice statements. It requires responsible action,” he said.
The new prime minister, who has not yet named a cabinet, will submit a 2025 budget to parliament next month, in what is expected to be the first major test for the new government.
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