Pierre Moscovici, head of France’s state auditor, emphasized the need for political stability to address the country's significant budget deficit. He cautioned against a snap presidential election before Emmanuel Macron's term concludes in 2027, highlighting the urgent requirement for a clear strategy to reduce debt and deficit.
Pierre Moscovici warns that the Social Security deficit is projected to reach €19.9 billion by 2028, driven by rising healthcare costs and demographic changes, with a structural deficit primarily in health and old-age branches. The government plans €5 billion in spending cuts for 2025, but uncertainties remain regarding their implementation and economic assumptions, raising concerns about the sustainability of the financial trajectory. The Cour des Comptes calls for urgent structural reforms to restore financial equilibrium.
The French government is set to present its draft budget for 2025, with local authorities urged to contribute to improving public finances. Concerns have been raised about a projected public deficit of 6.1% of GDP, with calls for tax increases on companies like Total and significant cuts in various sectors, including education and justice. The budget will undergo parliamentary scrutiny starting October 21, with a vote expected by November 19.
The French government aims to reduce the Social Security deficit to 16 billion euros by 2025, implementing measures such as a 2% revaluation of income tax brackets and a new tax on share buybacks by large corporations. A record 300 billion euros will be raised on the markets to finance spending, while a temporary contribution will target wealthier households. The High Council for Public Finance has deemed the budgetary approach "fragile," suggesting reliance on tax increases rather than expenditure cuts.
Seems like the connection with the server has been lost. It can be due to poor or broken network. Please hang on while we're trying to reconnect...
Oh snap! Failed to reconnect with the server. This is typically caused by a longer network outage, or if the server has been taken down. You can try to reconnect, but if that does not work, you need to reload the page.
Oh man! The server rejected the attempt to reconnect. The only option now is to reload the page, but be prepared that it won't work, since this is typically caused by a failure on the server.
