France sets 2025 budget deficit above 5% for growth

France’s new finance minister, Eric Lombard announced on Saturday that the 2025 budget bill will aim for a deficit “slightly above 5 per cent” to safeguard economic growth. The target marks a reduction from the projected 6 per cent deficit in 2024 but exceeds the previous government’s 5 per cent goal.

Lombard, previously head of Caisse des Dépôts, emphasised the importance of reducing the deficit through spending cuts rather than tax hikes, which he said should remain “very limited.”

The budget amendment follows a no-confidence vote that ousted the prior government in December, largely due to opposition to austerity measures. Lombard pledged to consult all political parties as he works with Prime Minister François Bayrou to finalise the budget by mid-February.

Attribution: Reuters

Subediting: Y.Yasser