France targets 2027 to tame ballooning deficit after COVID - sources

By Reuters5 days ago

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By Leigh Thomas

PARIS, April 8 (Reuters) - France plans to bring its public budget deficit back in line with an EU limit from 2027 and is prepared to write a firm spending cap into law to keep its deficit-reduction commitment on track, Finance Ministry sources said on Thursday.

During the coronavirus crisis, the European Union has suspended the rules requiring member states to keep their public deficits to less than 3% of gross domestic product.

France, which broke the limit for a decade until 2017, aims to gradually cut its deficit and only return to the 3% limit long after the crisis is expected to subside, according to annual long-term public finance plans the government will send to the European Commission this month.

Paris now plans to cut its public sector budget deficit to 2.8% of GDP by 2027 from a post-war record of 9.2% last year, a first Finance Ministry source said.

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