The finance minister, Bruno Le Maire, on Monday revised the forecast for economic growth this year to 1 percent, down from 1.4 percent at the end of last year.
“Lower growth means lower tax receipts, so the government must spend less,” Mr.
Le Maire said at a news briefing.
After spending lavishly during the pandemic to support the economy and shield consumers from high energy prices, France is now at risk of breaching European Union budget rules that restrict government borrowing.
To avoid that, the government must cut costs to lower the deficit to 4.4 percent of gross domestic product this year, from 4.8 percent
Persons:
Bruno Le Maire, Mr, Le Maire
Organizations:
European Union
Locations:
France, Ukraine, Gaza, Germany, China