France’s new government is facing a daunting task as they grapple with a deepening deficit and mounting debt. Led by two young and relatively unknown members of President Macron’s pro-business coalition, the economic team is under pressure to reduce deficits without burdening the middle class with higher taxes.
The country’s fiscal challenges are significant, with the deficit expected to reach €220 billion this year, the highest since World War II. The government is also grappling with a debt-to-GDP ratio of over 115%, well above the EU’s threshold of 60%.
To address these challenges, the new economic team is likely to focus on cutting spending and implementing structural reforms to boost growth. However, the task ahead is complicated by the need to strike a balance between reducing deficits and avoiding austerity measures that could harm the economy.
Despite their relative lack of experience, the new economic team has received support from President Macron, who has expressed confidence in their abilities to navigate the country through these challenging times. Only time will tell if they can deliver on their promises and steer France towards a more stable fiscal future.
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Video “New French government faces deepening deficit and mounting debt • FRANCE 24 English” was uploaded on 09/23/2024 to Youtube Channel FRANCE 24 English