10 billion euro savings plan, France’s growth revised downwards… Update on Bruno Le Maire’s announcements
The Minister of Economy was invited to TF1 this Sunday, February 18, 2024. Bruno Le Maire announced a new savings plan of around 10 billion euros. It also lowered French growth forecasts.
The Minister of Economy and Finance, Bruno Le Maire, this Sunday, February 18, lowered France’s gross domestic product growth forecast for the year 2024 from 1.4% to 1%.
“It is growth that remains positive, but which takes into account the new geopolitical context”He spoke on TF1, mentioning the war in Ukraine, the conflict in the Middle East, maritime transport problems in the Red Sea, the economic slowdown in China and a recession in Germany in 2023.
This expected growth of 1% of GDP roughly matches the forecasts of the European Commission, the Bank of France and the International Monetary Fund. France is striving to keep its commitment to reduce the public deficit to 4.4% of GDP in 2024, an objective confirmed by Bruno Le Maire.
Refusal to raise taxes
Rejecting the idea of a tax increase, the minister announced 10 billion euros in savings on state spending. “For seven years we have, with the President of the Republic, consistently refused to raise taxes”he said. “We will not stray from this line”.
Where to save money?
In terms of savings, the minister announced that five billion euros would come from reductions “Operating Expenses” in “All Ministries”. Another five billion will come from public policies.
Bruno Le Maire thus referred to a reduction of one billion euros in the envelope for public development aid and a saving of one billion in the “Ma Prime Renov” aid system dedicated to housing renovation. .
“Everyone will be asked to contribute”
Another billion will be saved by state operators such as Business France, France Competence, the National Agency for Territorial Cohesion and the National Center for Space Studies. “Everyone will be asked to contribute according to what they have today”The minister said.
The government is leaving the door open to introducing a supplementary finance bill in the coming months. “We retain the possibility of making a reform budget in the summer depending on the economic circumstances and the political situation”Mayor Bruno said.
