On Wednesday 12 July, the European Commissioner for Economic and Financial Affairs, Pierre Moscovici, took note of the French government's presentation of a budgetary trajectory aiming to bring the public deficit under the 3% of national GDP mark sustainably.
“France is still above the standards laid down. The French government has undertaken several times to be below 3% of GDP this year. This is within reach”, the Commissioner said. He went on to say that the presentation of a multi-annual budgetary trajectory - a nominal deficit below 3% of national GDP in 2017 and 2.7% in 2018 - was a good idea for a country like France.
In November, the Commission will present an opinion on the draft 2018 budget, on the basis of the latest data on the budgetary year under way.
Moscovici also stressed the importance of complying with the deficit reduction trajectory in structural terms.
In order to comply with its budgetary commitments for 2017, the French government will have to save between €4 and €5 billion. Seeking budgetary credibility among its European partners, it has pledged to get to grips with public spending, but has not specified the measures that will be taken to do this. It stresses its intention of not increasing direct taxation on individuals and businesses (see EUROPE 11824). (Original version in French by Mathieu Bion)