The French stability programme, which the government announced on Wednesday 11 April, forecasts a government deficit in nominal terms of 2.3% of GDP in 2018, following a level of 2.6% in 2017.
Economic growth is expected to be confirmed in France in 2018 and 2019, to return to 2.0% of GDP in 2018, then 1.9% in 2019, according to forecasts described by the French authorities as “cautious”. It will be driven by continued recovery in the Eurozone and the growth in global demand as well as the impetus of company investment and household consumption.
As regards reforms, the French national programme pledges to modernise the French economic and social model to build fair and sustainable growth. It is based on the following axes: - reforming employment law; - reducing taxation (e.g. cancellation of the residence tax) to facilitate investment; - simplifying the framework applicable to businesses; - transforming the state. (Original version in French by Mathieu Bion)