France Targets 2025 Deficit Between 5%-5.5% of GDP, Plans €50 Billion Savings

Jan 6, 2025, 07:56 AM

The French government aims to reduce its public deficit to between 5% and 5.5% of GDP by 2025, according to Finance Minister Eric Lombard and Budget Minister Amélie de Montchalin. Lombard stated that bringing the deficit down to 5% by 2025 would be too ambitious, emphasizing that the deficit 'will not significantly exceed 5%'. The government plans to achieve €50 billion in cost savings in 2025, primarily through spending cuts rather than new tax increases beyond those already announced, including a special tax on the biggest companies. Lombard reiterated that the 2024 deficit is projected to be around 6.1% of GDP and that they aim to reduce it progressively, targeting a deficit below 3% by 2029.