France's 2025 Budget: Aiming for EU Compliance and Financial Stability
France's Finance Minister Antoine Armand announced that the country's budget for 2025 will adhere fully to the European Union's new spending regulations. This statement comes ahead of his first meeting with EU counterparts on October 7, as the EU had previously reprimanded France for breaching budgetary rules. In July, France was placed under a formal procedure due to its deficit surpassing the 3% threshold, necessitating a plan to reduce public debt.
Following recent snap elections, which led to the formation of a new government, Paris secured a delay in presenting a budget that aims to address its staggering debt crisis through a combination of spending cuts and new taxes. "We have prepared a budget to strengthen the country's financial and national sovereignty," Armand stated during a media briefing. He emphasized that complying with EU regulations is not only essential for public finance but also crucial for maintaining international credibility.
In hopes of improving its financial situation by approximately 60 billion euros in 2025, France aims to bring the public sector deficit down to 5% of its gross domestic product (GDP), a notable decrease from an estimated 6.1% this year. Armand expressed optimism about achieving a deficit below the EU's 3% limit by 2029, although this timeline extends two years beyond the deadline promised by his predecessor, Bruno Le Maire, of 2024.
The Minister reiterated the government's commitment to meet the target of reducing the deficit to 5% by next year. "The Prime Minister has given me an extremely clear mandate to defend French and European interests in the world in economic and financial matters," Armand said, emphasizing the seriousness of the current economic considerations.
Later on Monday, the Minister is set to travel to Luxembourg for a meeting with his eurozone counterparts, where he will present France's policy priorities, outlining a clearer financial strategy in light of the stringent EU regulations and expectations. With these efforts, France aims not only to restore its economic stature but also to reinforce its position within the European framework.
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