French Minister for the Economy, Finance and Industry Antoine Armand  Photo | AFP
World

France's budget will 'fully' adhere to EU rules

France is looking to improve its financial situation by some 60 billion euros ($66 billion) in 2025 in the hope of bringing the public sector deficit to five percent of gross domestic product (GDP).

AFP

BRUSSELS: France's budget for 2025 will "fully" be in line with the European Union's new spending rules, Finance Minister Antoine Armand vowed, ahead of his first meeting with EU counterparts on Monday.

The new minister will present the national budget on Thursday, which Paris hopes will tackle France's "colossal" debt through spending cuts and new taxes.

"We have prepared a budget to strengthen the country's financial and national sovereignty," Armand said during a media briefing, adding that respecting EU rules is "a question of international credibility".

Brussels has already rebuked France for breaking budget rules, placing the country in a formal procedure in July because its deficit is above three percent.

France must submit a plan to reduce its public deficit, but Paris obtained a delay after a new government had to be appointed following snap elections.

France is looking to improve its financial situation by some 60 billion euros ($66 billion) in 2025 in the hope of bringing the public sector deficit to five percent of gross domestic product (GDP) from an estimated 6.1 percent this year.

Armand was bullish about France's push to reduce the deficit below EU rules.

"Our objective is to bring our deficit below the three percent mark by 2029," he said, which is two years longer than his predecessor Bruno Le Maire's promise earlier in 2024.

He reiterated France's determination to get the deficit down to five percent next year.

"The prime minister has given me an extremely clear mandate: to defend French and European interests in the world in economic and financial matters," Armand said.

The minister will head to Luxembourg later on Monday for a meeting with his counterparts in the eurozone to deliver a presentation about France's policy priorities.

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