France is doubling down on fiscal discipline after the European Union called out its budget overspending. Finance Minister Bruno Le Maire vowed Friday to cut the country’s public deficit below 3% of GDP by 2027, declaring: \"We will stick to the same path… to be under the three percent mark\".
🔍 The EU Commission singled out France and six other nations this week for breaching fiscal rules, launching a formal review process. France’s deficit hit 5.5% in 2023 – nearly double the EU’s limit – sparking concerns about long-term economic stability.
💡 Why it matters: Under EU agreements, member states must keep debt under 60% of GDP and deficits below 3%. France’s current debt stands at 110% of GDP, making this fiscal tightrope walk crucial for Europe’s second-largest economy.
🌐 Other countries facing scrutiny include Italy, Belgium, and Poland. But all eyes are on Paris as Le Maire tries to balance austerity measures with public sentiment ahead of key elections.
