FranceFrance’s budget deficit will temporarily increase again next year due to slowing growth and a changing tax regime, tightening president Emmanuel Macron’s room for manoeuvre as he pushes for European reforms, reports the Financial Times.
In Mr Macron’s first budget since the country’s deficit finally fell below the European Union’s 3 per cent spending rules earlier this year, France said it would show a deficit of 2.8 per cent next year compared to 2.6 per cent this year.
French finance minister Bruno Le Maire was at pains to explain the increase was due to exceptional items – including a change in how income tax is collected.
Without that charge, said Mr Le Maire, the budget deficit in 2019 would be 1.9 per cent.
Mr Le Maire pledged to continue in the same vein: “I want to say … our economic results are unsatisfactory compared to our European neighbours. And we certainly do not intend to stop there.”
