AFP – The public deficit in France is at risk of reaching 5.6 per cent of gross domestic product (GDP- this year and even 6.2 per cent in 2025, the Finance Ministry has warned, as a political crisis rumbles on.
The risk of France’s growing budget deficit piles further pressure on President Emmanuel Macron, who has been intensifying efforts to find a new Cabinet following the inconclusive July 7 polls.
The caretaker administration under Macron’s ally, Gabriel Attal, has been in place since July.
Finance Minister Bruno Le Maire and Minister for Public Accounts Thomas Cazenave expressed concern about the “extremely rapid increase in local government expenditure” in a letter sent to lawmakers on Monday evening.
On top of that, the two ministers warned that tax revenue forecasts might not be met.
France, Europe’s second biggest economy, is aiming for a deficit of 5.1 per cent of GDP this year.
Head of the finance committee in the National Assembly Eric Coquerel, French Parliament’s Lower house, said the public sector budget deficit could reach 5.6 per cent this year and would rise to 6.2 per cent next year if budgetary cuts of EUR60 billion are not made.
