France Adjusts Economic Growth Forecast as Global Economic Outlook Becomes Uncertain
The French government has revised its economic growth forecast for 2024 to 1%, down from the previously anticipated 1.4%, in response to an uncertain global economic environment and the recession in Germany.
A €10 Billion Savings Plan Introduced to Control Public Spending
A €10 billion savings plan has been launched to control public spending, which includes budget cuts in all ministries and a decrease in development aid.
Government Affirms Commitment to Not Increase Taxes
The Minister of Economy, Bruno Le Maire, has reassured the public that the government will not increase taxes.
During an interview with TF1, Minister of Economy Bruno Le Maire announced a significant revision to France’s growth forecasts for 2024, now set at 1%, down from the previously anticipated 1.4%. This decision is a reaction to the economic slowdown observed among major European partners, particularly Germany. The current geopolitical context, marked by tensions in Ukraine and the Middle East, as well as disruptions in maritime transport and the slowdown in China, directly influence this caution.
Growth is slowing down worldwide, especially in Europe, with significant growth revisions in Great Britain and Germany, and it is slowing down even further in China. All of this has an impact on French growth.
Bruno Le Maire, French Minister of Economy
A €10 Billion Savings Plan to Preserve Public Finances
The government will make an immediate effort to save €10 billion.
Bruno Le Maire, French Minister of Economy
In parallel, Bruno Le Maire has unveiled a €10 billion savings plan aimed at controlling public spending and maintaining the deficit at 4.4% of GDP by the end of 2024. This plan involves across-the-board budget cuts in all ministries and a reduction of nearly €1 billion in development aid. The goal is clear: achieve substantial savings while avoiding tax increases, a point on which the government remains firmly committed.
Fiscal Stability at the Heart of Priorities
The commitment not to increase taxes is a constant feature of French economic policy under the current administration. Bruno Le Maire has reiterated this position, emphasizing the importance of preserving the purchasing power of the French people and maintaining a stable tax environment. This strategy aims to reassure French taxpayers, who are already burdened by significant tax responsibilities.
