The European Union has approved France's revised deficit-reduction strategy, aiming to lower its budget deficit to below 3% of GDP by 2029. The updated plan, led by Prime Minister François Bayrou, replaces the previous version rejected in late 2024. For 2024, the goal is to reduce the deficit to 5.4% of GDP, down from earlier estimates of 6.2%.
This gradual approach seeks to balance fiscal responsibility with political stability, avoiding rapid austerity measures that could provoke public unrest. The plan aligns with EU regulations and will be closely monitored by the European Commission, which has authority over budget compliance across member states.
France's strategy involves structural reforms, including changes in tax policies, labor markets, and public spending, to ensure economic growth while maintaining fiscal discipline. Despite the cautious approach, challenges remain. Public resistance to austerity, political opposition, and global economic uncertainties could hinder progress.
Reducing the deficit is essential for maintaining investor confidence and fostering long-term economic stability. To succeed, France must implement reforms that support private sector growth while managing social welfare programs effectively.
https://lk-99kor.blogspot.com/2025/01/how-frances-new-budget-plan-will-shape.html
How France's New Budget Plan Will Shape Its Economic Future | Financial Growth
French government focuses on fiscal discipline to meet EU deficit targets by 2029. ⓒReuters/Pascal Rossignol/File Photo EU Approves France’s Updated Deficit-Cutting Plan: France’s Path to Economic Stability The European Union has officially approved
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