简体中文
French President Emmanuel Macron's government on Wednesday presented its first budget with billions of euros cut in public spending and taxes.
The draft budget, presented by the French ministry of Economy on Wednesday, aimed to save 16 billion euros (18.8 billion U.S. dollars) in 2018 and further 80 billion euros by 2022 by freezing expenditure of some ministries, local authorities and social welfare.
Furthermore, it targeted "sharp rise" in workers' purchasing power, with a 7-billion-euro cut in taxes next year.
"More public spending, it is mechanically more taxes on businesses and households. What France needs is not new taxes, but the courage to reduce public spending structurally," Economy Minister Bruno Le Maire said.
He pledged to reduce public expenditure by 0.7 percent from the gross domestic product (GDP) "even with prudent growth forecast."
In its first budget draft, since President Emmanuel Macron took office in May, the multiform government forecasted the budget gap to be 2.6 percent in 2018 compared to 2.9 percent expected for 2017, down from previous estimates of 2.7 percent and 3 percent respectively.
Favorable business climate and expanding world demand are likely to help the eurozone's second leading power to accelerate growth to 1.7 percent next year.
"France that accentuates the budgetary seriousness is a good news for itself and... for Europe. To get out of the procedure of excessive deficit is a very good signal, long awaited and now at hand," Le Maire said. (1 euro=1.175 U.S. dollar)
(ASIA PACIFIC DAILY)
