Fraser Hammond - French Deficit Lowest in Ten Years
Fraser Hammond says a better than expected drop in budget deficit boosts support for Macron campaign.
TAIPEI CITY, Taiwan, March 29, 2018 (Newswire.com) - According to official data, in 2017, France brought its public deficit to less than the European Union’s three percent limit for the first time in ten years. Fraser Hammond says the recent data supports President Emmanuel Macron’s aim of reestablishing French fiscal integrity in Brussels.
Falling to a better than anticipated 2.6 percent of GDP last year, the budget deficit came in at less than the government’s target of 2.9 percent. Fraser Hammond economists say that this is the best reading in over a decade.
Macron, a staunch Europhile, has made adhering to European budget regulations a foundation of his strategy to restore France’s reputation. This comes after years of delays by his predecessors who made France an ongoing offender of Euro Zone regulations.
Fraser Hammond economists say the improvement in the budget shortfall should give increased support to Macron’s undertaking to convince Germany to overhaul the eurozone and go some way to repairing the lack of trust between northern and southern European nations.
French Finance Minister Bruno Le Maire stated that the drop in budget deficit helps to restore French credibility and earn respect for President Macron.
Not long after his election victory in May last year, Macron implemented strict cost-cutting measures, which included reductions in housing subsidies, to bring the budget deficit to within the 3 percent limit. Fraser Hammond economists say that this move cost him dearly in popularity ratings.
Official data revealed that stronger tax receipts, supported by stronger economic growth also contributed to the better than anticipated improvement in France’s public finances.
Source: Fraser Hammond