"France to reduce public deficit below 3% of GDP by 2027".
This was stated by French Finance Minister Bruno Le Maire after the EU reprimanded Paris for violating budget rules, AFP reported.
"We must return to sound public finances and count on my full determination. We will stick to the same path with a view to being below 3% by 2027," Le Maire said.
France has been plunged into political uncertainty after President Emmanuel Macron called snap elections following his party's crushing defeat against the far-right in the European Parliament vote.
Political parties on both sides of the spectrum have made lavish spending promises that Le Maire has blamed for France's market volatility in recent days.
"We see programs presented by other parties and by the opposition, with very significant public costs," the finance minister said.
"This explains the reaction of the markets and the concerns expressed by the banking sector. This is a direct consequence of economic and financial programs that are completely stupid and irresponsible," he added.
On June 19, the European Commission said it would propose starting an "excessive deficit procedure" for Belgium, France, Italy, Hungary, Malta, Poland and Slovakia in July. All 7 countries have deficits higher than 3%.
Last year, France's deficit was 5.5%.
The bloc's rules have two basic goals: the country's debt should not exceed 60% of national output, and the deficit should not be more than 3%.
Le Maire defended France's policy and pointed to the "necessary decisions" taken over the past six months to reduce public spending. | BGNES
