The French finance ministry is to raise its deficit target for 2024 to the equivalent of between 5-5.1 percent of GDP, up from an original target of 4.4 percent, due to a rapid deterioration of state finances, reports Radio France Internationale.
At the end of 2023, France's public deficit stood at 3 trillion euros, making it one of the most indebted countries in the EU.
According to financial daily Les Echos, President Emmanuel Macron and finance minister Bruno Le Maire are at loggerheads over how to bring state finances back on track, with Le Maire arguing for stronger budget cuts and rejecting any increase in income tax.
The paper said the new target would require additional spending cuts worth 10 billion euros, on top of the 10 billion euros of spending cuts already announced in February.
Paris is due to send a revised deficit reduction plan to Brussels in the next few days.