The public deficit was 5.8% of GDP in 2024, instead of 6%, but the Minister of Economy said “it was not good news”.
The public deficit The Frenchman was 169.6 billion euros in 2024, 5.8% of GDP, accelerating income and not increasing both the expenses and the previous year. Then follows from the first balance of the Public finance Last year of the French Institute of Statistics Insta, upon revision in May. Economy Minister Eric Lombardattributed the result to “the very close expenses of Michel Barnier’s government” at the end of the year, as well as a “slightly” income better than expected In recent weeks, in an interview with the radio “France Inter”.
However, Lombard said it The figure “was not good news”Adding: “Until we face the problem of deficit and debt, we will be in danger”. The French deficit doubles almost the target of 3% They must respect the members of the euro area. The government plans to reduce the deficit to 5.4% of GDP In 2025, before positioning it below the European limit of 3% in 2029.
The country also fights one of the Higher block debt reports. The French public debt risen to 113% of GDP in 2024, compared to 109.8% of the previous year. The income accelerated 3.1% in 2024, after 2.2% of the previous year, and stood at 1,500.6 billion euros. Tax income has increased Slightly, 2% (+16.1 billion euros), after an increase of 0.6% in 2023. The expenses increased by 3.9%, after an increase of 3.7% in 2023, mainly guided by the increase in the cost of pensions indexed to inflation, together with an increase in an increase in unemployment costs.
Prepare the next budget: a “nightmare”?
The current administration has to face the enormous task of reducing spending In the middle of weak economic growth. The ambition of President Emmanuel Macron is added to this pressure to increase defense expenses.
The Minister of Economy declared on Thursday that the government is creating a committee of Notice on public financesin which local authorities will participate, the social sector and ministers responsible for budgets. The Committee will be launched In mid -April, during a great conference on public finances Prepared by Prime Minister François Bayrou.
According to the growth forecasts magazines of the French Central Bank, The second European economy will grow by 0.7%Compared to the previous 0.9%, in 2025. Lombard said that there is “significant uncertainty”, in particular on how American rates will influence the French economy.
At the beginning of this week, the spokesman for the Sophie Depth government said this The preparation of the 2026 budget It has been outlined as “a nightmare given the important financial difficulties”.
