[Opinion] Budget 2027: Sceptical About Deficit Reduction, the High Council for Public Finance Calls for a "Significant" Effort
4 Articles
4 Articles
In its opinion published on Thursday 1 October, the body warns against "optimism" of the executive's projections for next year. The target of a deficit reduced to 5% of GDP would be conditional on "the implementation of all measures" in the draft budget.
The objective of reducing the government deficit to 3% of GDP by 2029, within the European limit, is "very unlikely", warned the institution on Thursday.
Replies oil prices and declines in interest rates, rebounds in the economy, adoption of a strict budget followed by its execution in the letter: for the institution, Sébastien Lecornu's project « supposes a chain » of good news that has nothing to do with it.
The High Council for Public Finance issued its opinion on the 2027 budget on 1 October. It recognises an effort of 28 billion euros, but the debt burden, 91 billion in 2027, absorbs the bulk of it: the deficit would fall by only 5.4 to 5% of GDP and the debt would rise to 121.7%. The alert is for 2028 and 2029, where the effort should be increased.
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