A French government spending review has identified 10 billion euros ($11 billion) in budget savings that will be targeted in the coming years, Finance Minister Bruno Le Maire said on Monday.
French public spending as a share of GDP, long among the highest in the world, exploded during the COVID-19 pandemic and then during last year’s energy price shock, pushing the budget deficit to a record.
The government of President Emmanuel Macron now aims to cut the deficit to 2.7% of economic output by the end of his five-year term in 2027, from 4.9% this year, only gradually working towards an EU-wide limit of 3% that France has rarely respected.
