French Prime Minister: Reforms to Reduce Budget Deficit – Nieuws.nl
The French government is set to reduce the budget deficit through further reforms, such as those in the labor market, according to French Prime Minister Gabriel Attal. This comes in response to the downgrade of France’s credit rating by credit rating agency S&P Global on Friday.
S&P stated that the French budget deficit will be higher in the coming years than previously expected. The credit agency believes that France will not meet its target of reducing the deficit to below 3 percent of the gross domestic product (GDP) by 2027. France’s rating has now been downgraded from AA to AA-.
However, Attal mentioned that plans to reform unemployment benefits will contribute to this effort. The regulations will be tightened to encourage more people to enter the workforce, resulting in increased government revenue. He expressed confidence that at the beginning of President Emmanuel Macron’s term, the deficit was brought below 3 percent and that Macron can achieve this again. Last year, the French deficit stood at 5.5 percent.