PARIS, Dec 29 - France's new finance minister, Eric Lombard, announced that the delayed 2025 budget bill will target a deficit of 'slightly above 5%' to support economic growth. This decision follows the previous government's loss of a no-confidence vote in early December, which was sparked by discontent over austerity measures.
Lombard, who previously led Caisse des Depots, stated that this new deficit target is higher than the 5% aimed for by the former administration, yet it represents a reduction from the anticipated deficit of over 6% of GDP for this year. He emphasized the need to amend the budget bill to ensure it fosters growth, advocating for a focus on cutting public spending rather than increasing taxes.
The finance minister plans to engage with all political parties in parliament to shape the budget proposals, aiming for completion by mid-February. Lombard was appointed to his position as part of Prime Minister Francois Bayrou's government, which currently lacks a working majority.