French budget deficit for 2025 will not be ‘much’ above 5%: minister

FRANCE’S budget deficit for 2025 “will not be much above 5 per cent,” the country’s budget minister Amelie de Montchalin reaffirmed in an interview published on Sunday with Le Parisien paper.

Last month, French Finance Minister Eric Lombard had also said France’s delayed 2025 budget bill would target a deficit of “slightly above 5 per cent”.

Reducing France’s deficit, which has consistently been above limits set by the European Union, has been earmarked as a priority for Prime Minister Francois Bayrou, as it was for his predecessor Michel Barnier, who was ousted in December.

However, Bayrou - similar to Barnier - faces challenges over finding ways to cut public spending amid opposition from both far-right and far-left political parties.

France’s 2024 deficit is expected to stand at above 6 per cent of gross domestic product (GDP). REUTERS