Prime Minister Michel Barnier said on Wednesday that France’s economic situation is serious, saying that more information is needed to measure the “reality” of France’s public finances. Before Barnier became prime minister earlier this month, France was accused of breaching EU budget rules. The Bank of France said that by 2027, the deficit rules of the European Union are not realistic.
France’s public sector deficit is expected to reach 5.6 percent of GDP this year, and is expected to rise to more than six percent in 2025. Prime Minister Barnier, who was appointed by French President Emmanuel Macron after a long tussle in parliamentary elections, has proposed tax increases for economic stability, but Macron has rejected them. He said that to improve the deteriorating economic situation, more responsible actions are needed than just beautiful statements.
