France's Bank of France Head Says Lowering Deficit to 3% of GDP in 5 Years Possible, Not Realistic in 3 Years
In a recent interview, Bank of France head Francois Villeroy de Galhau stated that it may not be realistic for France to lower its deficit to 3% of GDP within three years, but with the right course of action, it could be achievable within five years. This comes at a time when French finance minister Antoine Armand has described the country's budget deficit as one of the worst in history, with a current expectation of a 2024 deficit of 5.1% of GDP - above the EU's 3% limit.
Prime Minister Michel Barnier has hinted at potential tax increases for the wealthy and some corporations, along with spending cuts to help contain the deficit. Villeroy expressed support for these measures in the interview. The upcoming challenge for France's new government will be navigating a budget for 2025 through a challenging hung parliament.
In conclusion, the potential for France to lower its deficit to 3% of GDP within five years could have significant implications for the country's economy and financial stability. By implementing the right fiscal policies and making tough decisions on taxes and spending, France could work towards achieving this goal and improving its overall financial health.