France can reach 3% deficit by 2029, central bank governor says
Emmanuel Moulin says France can meet its 2029 deficit goal, while political uncertainty is weighing on borrowing costs.
Key takeaways
- Emmanuel Moulin said France could return to a 3% deficit in 2029.
- France’s deficit was 5.1% of GDP last year, according to the article.
Banque de France Governor Emmanuel Moulin said France could bring its budget deficit back to 3% of GDP by 2029, despite political turmoil. The deficit was 5.1% of GDP last year, and the government’s objective is to bring it to 5%.
Moulin said political uncertainty, including questions over whether a budget will pass, has contributed to higher borrowing costs. He argued that reducing the deficit is a matter of “putting the house in order,” not austerity.
The European Union has recommended that France bring its deficit closer to 3% of GDP. Moulin said the country needs to improve its fiscal position but remains able to find investors for its bonds.
This article was produced with the help of AI technology. Based on reporting by the outlets listed above.
