France’s budget situation is “very serious”, Prime Minister Michel Barnier told AFP on Wednesday, saying more information was needed to assess the “precise reality” of France’s public finances.
France was placed under formal procedure for breaching European Union budget rules before President Emmanuel Macron chose Barnier as head of government this month.
And the Bank of France warned this week that a projected return to EU deficit rules by 2027 was “not realistic”.
The French public sector deficit is forecast to reach around 5.6 percent of GDP this year and exceed six percent in 2025, while EU rules requiring a deficit ceiling of three percent.
“I discover that the budgetary situation in the country is very serious,” Barnier said in a statement to AFP.
“This situation requires more than nice statements. It requires responsible action,” he said.
The new prime minister, who has yet to appoint a government, is due to present the 2025 budget to parliament next month, which is expected to be the first major test for the incoming administration.
