France Targets Growth with Bold Budget Move

France's new finance minister, Eric Lombard, unveils a revised 2025 budget plan aiming for a deficit slightly above 5% to sustain growth. This move follows the previous government's no-confidence defeat. Lombard emphasizes deficit reduction via spending cuts rather than tax hikes, seeking bipartisan support.

France's newly appointed Finance Minister, Eric Lombard, has announced a revised 2025 budget strategy targeting a deficit slightly above 5% to foster economic growth. This revision comes after the previous government was ousted in a no-confidence vote due to unpopular fiscal policies.

Lombard's proposed deficit level is higher than the previous administration's 5% target. However, it marks a reduction from this year's expected deficit exceeding 6% of GDP. Lombard emphasized that deficit reduction should largely stem from decreased public spending rather than tax hikes.

Lombard, selected for his new role under Prime Minister Francois Bayrou, intends to engage all political factions in constructive dialogue to shape the nation's budget, aiming for legislative passage by mid-February despite lacking a parliamentary majority.

(With inputs from agencies.)