Home Money France slams brake on public spending as it struggles to bring its finances back under control

France slams brake on public spending as it struggles to bring its finances back under control

by Elijah
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Cuts: French Finance Minister Bruno Le Marie

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Cuts: French Finance Minister Bruno Le Marie

Cuts: French Finance Minister Bruno Le Marie

France is putting an “emergency brake” on public spending to get its finances back under control, its finance minister has said.

In an interview with French newspaper Le Monde, Bruno Le Maire warned that the deficit by 2023 will have been “significantly” higher than the target and said further spending cuts were needed.

“Due to the loss of tax revenue in 2023, we will be significantly above the 4.9 per cent target,” he said, adding that this year’s £8.5bn cuts are “not aimed at cutting costs, but rather a brake of emergency”.

Another £10bn of spending cuts will be needed in 2025 to rein in the growing deficit.

The comments, made yesterday ahead of Jeremy Hunt’s budget, underline the magnitude of the task facing countries as the pandemic recovery falters in the wake of soaring inflation.

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