Saturday 24 March 2018

France's debt to hit record next year

FRENCH public debt is to hit a record 95.1pc of GDP next year, far higher than previous estimates, as it unveiled next year's draft budget for the embattled economy.

But the government said debt should fall back in 2015, and reiterated a pledge to meet its EU-mandated deadline to bring the public deficit below 3pc that year.

The draft budget was presented to the cabinet by Finance Minister Pierre Moscovici and Budget Minister Bernard Cazeneuve, who outlined "unprecedented" €15bn-euro cuts in public spending as France tries to rein in its public deficit without compromising growth.

The country is battling to rekindle tepid economic growth back amid record-high unemployment, limited investment and low consumer spending.

Some 80pc of savings next year will come from cuts in public spending and 20pc from a rise in taxes, the ministers said. (AFP).

Irish Independent

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