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France’s budgetary situation is “very serious”, Prime Minister Michel Barnier told AFP on Wednesday, saying more information was needed to gauge the “precise reality” of French public finances.<\/p>\n
France was placed on a formal procedure for violating European Union budgetary rules before Barnier became head of government earlier this month, while the Bank of France warned this week that a projected return to EU deficit rules by 2027 was “not realistic”.<\/p>\n
France’s public sector deficit is projected to reach around 5.6 percent of GDP this year and go over six percent in 2025, which compares with EU rules calling for a three-percent ceiling on deficits.<\/p>\n
Barnier, appointed by President Emmanuel Macron after protracted wrangling in the wake of an inconclusive parliamentary election, has floated possible tax rises to help stabilise finances, a measure Macron has ruled out during the seven years he has been president.<\/p>\n
“I am discovering that the country’s budgetary situation is very serious,” Barnier said in a statement to AFP.<\/p>\n
“This situation requires more than just pretty statements. It requires responsible action,” he said.<\/p>\n
The new prime minister, who has yet to appoint a cabinet, is to submit a 2025 budget to parliament next month, in what is expected to be the first major test for the incoming administration.<\/p>\n
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