French Economy Minister Eric Lombard is eager to lower the public deficit with an aim of 5.4% of GDP in 2025 followed by 3% into 2029. The European Union requires member states to maintain a budget deficit below 3% but only 17 of the 27 members have met that target. France is the largest European economy failing to maintain this goal as they grapple with ever-rising government debt.
“We are going to work with all the political parties … to discuss, to talk with us. We are going, also, to work with the unions, with the employers, in order to reach a consensus on the main policies that are key for the country, and policies on which we can make adjustments that will allow us to spend less in 2026,” Lombard said, later admitting that politics have had a “negative impact on growth.”
The economy experienced a 0.1% contraction during Q4. The Bank of France expects the economy to…
