The European Union authorities gave their results today. They provide for France a lowered growth forecasts. In fact, Brussels annouces a deficit of 4.7% for the nation’s GDP in 2016. To them, France will not be able to meet its commitments.
This bad result is due to «a still modest growth and measures such as a new rising cost of competitive employment tax credit and tax cuts for low-income households,» said the Commission in its report.
This difference is explained because Brussels expects a slightly higher inflation than Paris. To react, Finance Minister Michel Sapin has also stated that “these forecasts were made public before any new proposal were made” and, according to him «mean nothing».
The Commission based its analysis on the economic plan announced by France for 2015, but they do not take all measurements because «some off these aren’t sufficiently detailed to be included in the forecast».
The new measure announced by France should help to reduce the country’s public deficit from 3.7 to 3.6 billion.
Kevin Mbenza IEJ 3E