The government is still pointing to a reduction in the public deficit to 3% of the Gross Domestic Product (GDP) in 2029 “despite the increase in the defense effort,” confirmed economy minister Eric Lombard before the Senate Finance Committee on Wednesday.
The senators auditioned together with the Minister of Public Accounts Amélie de Montchalin, in particular in the reform of the thresholds of the VAT franchise, the defense measures and their financing, the level and the reliability of the fiscal income, or the preparation of the Finance Law project by 2026.
Economic Framework “Under Voltage”
This year, the Government wants to limit the public deficit to 5.4% GDP, compared to around 6% last year. “I confirm that we point out, despite the increase in effort in defense, to be below 3% (GDP) in 2029, it is also a European commitment,” said Eric Lombard.
Éric Lombard also deplored an “economic framework under tension”, and had lamented a “silly war” with the United States on Friday, after Donald Trump’s threats to impose 200% of customs duties to France and the European Union of Customs Rights in its champagnes, wines and other alcohols.
In response to US customs tasks, “the European Commission (…) in close relationship with the government of member countries and, in particular, the French government, prepares measures that affect an equivalent amount of imports from the United States. It is clear that if this would continue, it would have an unfavorable impact on growth,” he said.
A meeting of private and industrial investors organized on Thursday in Bercy in the presence of the Minister of the Economy and that of the Armed Forces, Sébastien Lecornu, must help mobilize funds for this sector.
Source: BFM TV
