France Will Miss 3% Deficit Target in 2014

France’s finance minister Michel Sapin has said the country will not achieve a 3% EU budget deficit target.

France’s budget deficit will be around 4.4% of GDP in 2014, drop to 4.3% next year, and will not go below 3% until 2017, he said.

Mr Sapin also lowered the country’s growth projections for this year and next.

However, France was not requesting a change in European Union rules, he said at a press conference.

The country’s lack of growth reflected “an economic reality” that affects Europe, Mr Sapin said.

Projections for growth were lowered from 0.7% to 0.4% in 2014, and down from 1.7% to 1% in 2015.

The government will maintain its current plan for 21bn euros (£17bn) of public spending savings in 2015 while not raising taxes during that year, he added.

France plans to cut public spending by 50bn euros by 2017.

The country has missed a number of budget deficit targets, and has struggled with high unemployment and low growth.

In August three French ministers resigned amid a bitter row over economic policy.

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