03/04/2019 (Agence Europe) – The French authorities indicate that the nominal deficit for 2019 is expected to be 3.1% of GDP, 0.1 percentage point lower than projected at the end of 2018 (see EUROPE 12163/2). According to AFP, however, this forecast does not take into account any decisions that might be taken at the end of the “Great Debate”, which has been shaping French political life in recent weeks, since the “yellow vests” began their protests. The European Commission will take note of the nominal deficit figure but will focus particularly on the structural deficit figure. Under the rules of the preventive arm of the Stability and Growth Pact, which France joined last year, Paris must reduce its structural deficit by 0.6% of GDP per year, although the Commission does accept a degree of flexibility. At the end of 2018, the French authorities were not expecting to reduce the deficit at all this year. (LT)