French gov't aims spending cut of 4.5 bln euros in 2017 to meet deficit target: minister

BY  | FROM  | 2017-07-12 16:21

France was working to generate 4.5 billion euros (5.12 billion U.S. dollars) in spending cuts in 2017 as it wants to tame the public deficit to 3 percent of economic output by the end of this year, Gerald Darmanin, minister of action and public accounts said on Tuesday.
In an interview with the local newspaper Le Parisien, Darmanin said "France will keep its word" after it had broken several times promises to reach the safe line of 3 percent imposed by the European Union (EU).
"We found 4.5 billion euros of savings to lower the deficit under 3 percent from this year by reducing state budget only. Neither local authorities nor social security will be involved," the minister added.
In "an unprecedented" move, the government will squeeze public expenditure without increasing taxes and affecting public services in relation with French daily life, according to Darmanin.
The government aims to balance the country's public finances squeezing mainly by trimming ministerial budgets without slashing jobs, he added.
In a recent report, France's audit office La Cour des Comptes saw the deficit of the eurozone's main powerhouse at 3.2 percent of the national output this year, due to 8-billion-euro budget shortfall left by the outgoing Socialist government.
French President Emmanuel Macron has promised to meet the budget gap target of 2.8 percent by the end of 2017. He also pledged to cut public spending by 60 billion euros by 2022. (1 euro = 1.14 U.S. dollars)

    Related News

      Financial Times

    • Fed fears market misreading of guidance
    • The US Federal Reserve is keen to revamp its forward guidance about future interest rates but terrified of a market misunderstanding, according to the minutes of its September meeting

      Reuters

    • Asian shares rebound after Fed renews dovish credentials
    • Asian shares bounced back and the dollar fell on Thursday after minutes of the U.S. Federal Reserve's latest policy meeting showed policymakers have some concerns about downside risks to the global economy and the dol...

      USA TODAY

    • Nigeria succeeds at containing Ebola
    • People here are shaking hands again, kissing, hugging, touching. These days, shops are open, people are working, and children are finally going back to 
      school
    Chinese Dictionary: