France's Budget Battle: Navigating a 5% Deficit

France aims to reduce its budget deficit to slightly above 5% by 2025, as confirmed by Budget Minister Amelie de Montchalin. The deficit remains a challenge due to EU limits and political opposition. Current projections show a deficit exceeding 6% of GDP for 2024.

France's ongoing battle to rein in its budget deficit was reaffirmed this Sunday by Budget Minister Amelie de Montchalin. Speaking with Le Parisien, she confirmed that the 2025 budget deficit will be slightly more than 5% of GDP.

The French government has been grappling with budget deficits that surpass European Union guidelines—a matter labeled a priority by Prime Minister Francois Bayrou. This challenge was inherited from his predecessor Michel Barnier, who faced similar hurdles before his ousting in December.

Currently, the 2024 deficit projects to exceed 6% of GDP, underscoring the balancing act Bayrou faces amid resistance from both far-right and far-left political factions.

(With inputs from agencies.)