What's happened
France's Prime Minister Michel Barnier announced a budget aimed at saving €60 billion in 2025, amid a soaring deficit now at 6.1% of GDP. The country seeks to address a colossal debt exceeding €3.2 trillion, with significant cuts and new taxes proposed to stabilize finances.
Why it matters
What the papers say
According to the New York Times, Prime Minister Michel Barnier stated, "Our deficit is considerable," highlighting the urgency of the situation. Politico notes that France's debt has reached €3.2 trillion, with Barnier seeking a two-year extension on EU deficit targets. The Committee for a Responsible Federal Budget warns that the fiscal policies of political candidates in the U.S. could exacerbate similar issues, emphasizing the global nature of fiscal responsibility.
How we got here
France's fiscal troubles have deep roots, with deficits persisting since the mid-1970s. Recent crises, including the COVID-19 pandemic and inflation from the Ukraine conflict, have exacerbated the situation, leading to a debt increase from 100% to 112% of GDP during President Macron's tenure.
More on these topics
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Michel Bernard Barnier is a French politician serving as the European Commission's Head of Task Force for Relations with the United Kingdom since November 2019.
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France, officially the French Republic, is a country consisting of metropolitan France in Western Europe and several overseas regions and territories.
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Emmanuel Jean-Michel Frédéric Macron is a French politician who has been President of France and ex officio Co-Prince of Andorra since 14 May 2017.