French Debt to Hit 95 Percent of GDP in 2014

The figure was revealed as the country unveiled its budget for next year.

But it said debt should fall back in 2015, and repeated its aim to bring the public deficit below 3% that year, the EU’s deadline for doing so.

The government also said there will be some tax increases for households, but other tax reductions for businesses.

In addition, the budget focuses on tightening public spending, with some 15bn euros (£12.6bn) in savings planned, as part of a plan to cut some 18bn euros off the deficit.

But debt servicing costs will rise to 46.7bn euros, compared with 45bn euros in 2013.

The 2014 budget is based on a growth forecast of 0.9%, lowered from a previous 1.2% forecast, with just 0.1% in growth forecast for this year.

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza