France’s budget deficit could exceed 6 percent

Saint-Martin made the statement in a speech in the Budget Committee of the French National Assembly on Wednesday. There he described the situation for the country’s public finances as worrying.

Unexpectedly low tax revenues and excessive public spending are the main reasons, the new minister said. But he also blamed the country’s long-standing political wait-and-see attitude.

The previous government set a budget deficit limit of 5.1 per cent for 2024, but the excess was already at 5.6 per cent at the beginning of September.

The European Commission has opened a case against France as a result of the growing deficit in the national budget. This is a procedure that forces France to negotiate a plan together with the European Commission to limit the deficit to 3 percent, which is the EU’s budget limit.

– We will have to make significant efforts in 2025, Saint-Martin said on Wednesday, and emphasized that France must first save on expenditure items before there can be any question of considering tax increases.

He says that a budget proposal will be presented on 9 October. Meanwhile, the European Commission has set 31 October as the deadline for presenting the plan which will ensure that the EU’s budget limit is maintained.