France: ‘2013: deficits explode’

25 June 2013 – Presseurop Le Figaro
Le Figaro, 25 June 2013

According to the financial committee of the French National Assembly, the state public spending deficit, which was limited to €61.5bn in the 2013 budget, is expected to reach €80bn (4 per cent of GDP instead of the 3.7 per cent planned) by end of the year.

In a report, the committee explains the failure to meet the spending target is due to a reduction in tax revenue prompted by declining growth and incessant fiscal changes, which have stalled France’s economy.

“There is no shortage of suggestions on how to make savings,” points out Le Figaro.

At the end of May, the European Commission set out a list of recommendations on how to reform France and reduce its spending deficits. [...] Embarking on this path is much more difficult than raising taxes. But it is the only option.”