Thursday, 11 September 2014

France to miss deficit target, lowers growth projections

Michel Sapin

France's finance minister Michel Sapin has said the country will not achieve a 3% EU budget deficit target.
France's budget deficit will be around 4.4% of GDP in 2014, drop to 4.3% next year, and will not go below 3% until 2017, he said.
Mr Sapin also lowered the country's growth projections for this year and next.
However, France was not requesting a change in European Union rules, he said at a press conference.
The country's lack of growth reflected "an economic reality" that affects Europe, Mr Sapin said.
Projections for growth were lowered from 0.7% to 0.4% in 2014, and down from 1.7% to 1% in 2015.
The government will maintain its current plan for 21bn euros (£17bn) of public spending savings in 2015 while not raising taxes during that year, he added.
France plans to cut public spending by 50bn euros by 2017.
The country has missed a number of budget deficit targets, and has struggled with high unemployment and low growth.
In August three French ministers resigned amid a bitter row over economic policy.

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