EU economy chief Paolo Gentiloni on Monday welcomed his "promising" discussions about France's budget with French Finance Minister Antoine Armand as Paris aims to rein in spending and bring down its deficit.
"We all acknowledge the difficulties, but we are already discussing at a technical level with the French authorities, with the new government, about the draft budget and especially about the fiscal mid-term plan," Gentiloni told reporters in Luxembourg.
Earlier, Armand vowed that France's budget for 2025 would be "fully" be in line with the European Union's new spending rules.
The new minister will present the national budget on Thursday, which Paris hopes will tackle France's "colossal" debt through spending cuts and new taxes.
"We have prepared a budget to strengthen the country's financial and national sovereignty," Armand said during a media briefing, adding that respecting EU rules is "a question of international credibility".
Brussels has already rebuked France for breaking budget rules, placing the country in a formal procedure in July because its deficit is above 3 percent.
France has 'one of the worst deficits' in its history, minister says
Credibility
France must submit a plan to reduce its public deficit, but Paris obtained a delay after a new government had to be appointed following snap elections.
France is looking to improve its financial situation by some €60 billion in 2025 in the hope of bringing the public sector deficit to 5 percent of gross domestic product (GDP) from an estimated 6.1 percent this year.
Armand was bullish about France's push to reduce the deficit below EU rules.
"Our objective is to bring our deficit below the three percent mark by 2029," he said, which is two years longer than his predecessor Bruno Le Maire's promise earlier in 2024.
France targets the rich with temporary tax hikes to bring down debt
He reiterated France's determination to get the deficit down to 5 percent next year.
"The prime minister has given me an extremely clear mandate: to defend French and European interests in the world in economic and financial matters," Armand said.
Germany on Monday warned EU countries "not to joke" around with financial markets over "the credibility of public finances", days before France is due to present its national budget for 2025.
"We must credibly reduce our deficit and our debt in order to be able to finance ourselves in an adequate and stable manner," German Finance Minister Christian Lindner told reporters.
(with AFP)
