France aims to address structural budget by 2017

(Source: Reuters)

French finance minister Pierre Moscovici has told the newspaper Le Monde that France will seek to tackle it structural deficit by 2017:

We are not giving up on anything.

The government target is still to return to structural balance by 2017, secure the strongest possible economic growth and turn around the jobless trend from the end of 2013.

Economics reporter Ben Southwood wrote last week on the failure of the French government in tackling its spending:

Analysts said that France’s 2013 deficit target was impossible to achieve, after the gap widened in the first two months of the year.

The gap between receipts and spending was 8.6 per cent wider – at €27bn (£23bn) – in the first two months of this year than in the same period last year, numbers from the budget management office, Agence Tresors, showed.

“Today’s data comes as a reminder that measures previously taken may not be enough to bring the deficit closer to the three per cent of GDP limit,” said ING’s Julien Manceaux.

“This initial target is definitely out of reach for 2013 but if the deficits continue to increase, even 2015 will appear too soon to comply with European rules.”

(Full article)