France’s postponed 2025 budget bill aims to achieve a deficit “slightly above 5%” to protect economic growth, new French Finance Minister Eric Lombard said in an interview with French financial weekly newspaper La Tribune Dimanche.
Lombard, who previously led the Trust, was tasked with passing the budget through Parliament after the previous government was defeated by a no-confidence vote in December over austerity measures.
The new target is higher than the 5% deficit proposed by the previous administration, but represents a decrease from the current year’s deficit, which is expected to exceed 6% of GDP. “We need to amend this (budget) bill to create a good budget with a deficit of just over 5% to protect growth,” Lombard said.
He stressed the importance of reducing the deficit by reducing spending rather than increasing taxes, noting that any tax increases should be “very limited.” Lombard also plans to consult with all political parties in Parliament, and incorporate their input into the government’s budget proposals.
Lombard’s appointment last Monday comes within Prime Minister François Bayrou’s government, which faces challenges due to the lack of a parliamentary majority. Bayrou has set a mid-February deadline to finalize the budget, signaling a push to reach consensus on addressing France’s fiscal challenges.