In a press release issued by the Ministry of the Economy and Finance on Tuesday 19 September, the French government confirms that its public deficit is expected to be below 3.0% of GDP in 2017, according to the draft public finance programming bill it submitted to the High Council for Public Finances on Friday 15 September.
The French authorities explain that this adjustment to the public deficit forecast, which had previously been put at 3.0% of GDP (see EUROPE 11819), is the result of the remedial actions adopted this summer, which are producing their effects on spending, whilst revenue and growth are expected to be slightly above the initial forecasts. If these latest figures materialise, France will come out of excessive deficit proceedings, opened against it in 2007, and will join the preventative arm of the stability and growth pact next year. For 2018, the government predicts that the public deficit will be 2.6% of GDP.
As for growth, the French government's forecasts put this at 1.7% in 2017 and 2018.
Readers may recall that like all Eurozone member states, France must present its 2018 draft budget to the European Commission no later than 15 October. (Original version in French by Lucas Tripoteau)