2014 French budget far too optimistic

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budget calculationFrench’s Finance Minister Bernard Cazeneuve expects much lower revenue due to the European crisis.

As Brussels just approved the French budget for 2014, the government made a significant revision of 5.5 billion less than estimated.

The previous French budget had been established at over 11 billion euros but the crisis had a great impact on the French economy.

The growth had been around 0.5% in the second quarter but now the third quarter is down to 0.1% from the gross domestic product (GDP).

Indeed, the French government has been dealing with the crisis since 2008 and still doesn’t succeed to reach their economic aim.

Furthermore, French companies are still dismantling, which doesn’t incite both investments and purchase.

The most important consequence is that factories have not sufficient growth to invest, pay taxes and revenues to the French government.

“About the VAT, there is a gap of about a billion euros, and four billion euros on the tax imposed on the factories,” said Bernard Cazeneuve on French news TV, BMFTV.

Steeven Ballein 3F1