Finances: the government deficit is falling, “more than 5%” of GDP, minister Thomas Cazenave acknowledges
“It is INSEE that publishes the government deficit figure for 2023,” Thomas Cazenave said the day after meetings at the Élysée around Emmanuel Macron on public finances. The National Statistical Institute will make this figure public on Tuesday.
At the beginning of March, Minister of Economy and Finance Bruno Le Maire had already warned that the deficit in 2023 would amount to “significantly more than 4.9%” of GDP. “It will be more than 5%,” confirmed the delegated Minister of Public Prosecution. Accounts, which put forward as reasons for these new estimates the economic “slowdown” of China, the war in Ukraine or even the difficulties of “European partners” such as Germany, who “thought” about France and weigh on growth, and thus on tax revenues.
“New Agreement”
“This is a form of new deal for our public finances,” Cazenave assured. “The state responded immediately. We have reduced state spending by 10 billion euros to adapt to this new international context,” he stressed.
Although, under these circumstances, the target of a deficit reduction to 4.4% by 2024 appears difficult to achieve, the minister responsible for public accounts limited himself to saying that the government “would have the opportunity to adjust (its) stability programme.” present, i.e. (its) forecasts to the European Commission”. “And we will of course have to take into account the fact that the deficit for the year 2023 will have been higher than expected and above all, in principle, take into account the new economic context,” said Thomas Cazenave.
Which roads?
The minister did not want to reveal what the “savings options” were that Bercy had in mind to get the government accounts in order, ensuring that he wanted to “take all the time necessary to prepare” the 2025 budget “as best as possible” to set.
