France's newly appointed Finance Minister, Eric Lombard, recently stated in an interview that the budget bill postponed to 2025 will set a budget deficit target "slightly above 5%" to protect France's economic growth. This target is higher than the previous government's 5% but will be lower than this year's expected level of over 6%.
Spending Cuts Preferred Over Tax Increases
Lombard indicated that to protect economic growth, the focus on reducing the deficit will be on cutting public spending rather than increasing taxes. He emphasized that any form of tax increase should be "very limited." He also mentioned that the government will consult with all parties in the French parliament when drafting the budget proposal to seek the best solutions.
2025 Deficit Target Analysis
According to Lombard's plan, the 2025 deficit target, although higher than the previous government's goal, reflects the French government's flexibility in addressing economic challenges while protecting economic growth. This year, France's deficit is expected to expand to more than 6% of GDP, mainly due to the economic environment and increased public expenditure.
New Finance Minister Faces Challenges
Lombard officially joined the Bérenger government last Monday, assuming the position of Finance Minister. His appointment marks an adjustment in French fiscal policy, as the new government plans to tackle future challenges by balancing economic growth with fiscal discipline. Lombard's policy goals will have a profound impact on France's economic recovery and public finance stability.
Summary
Striking a balance between economic growth and fiscal discipline, Lombard's policy goals will serve as an important guiding star for France's 2025 budget. Whether his policies can effectively reduce the deficit while maintaining economic growth will be a focal point of attention for all parties involved.
