France’s new Finance Minister, Éric Lombard, has set a 2025 budget deficit target “slightly above 5%” of GDP, prioritizing measures to safeguard economic growth.
The revised target comes as Lombard takes over following the ousting of the previous government after a no-confidence vote in early December, largely driven by opposition to austerity measures.
Lombard, who previously led Caisse des Dépôts, noted that the deficit would be lower than this year’s projected level of over 6%, though it slightly exceeds the 5% target set by his predecessor. “We need to revise this (budget) bill to create a solid budget. A deficit slightly above 5% will help protect growth,” Lombard stated.
He emphasized that reducing the deficit should focus on cutting public spending rather than raising taxes, noting that any tax increases must be “very limited.” Lombard also pledged to engage in consultations with all political parties in the French parliament, aiming to incorporate their input into the government’s budget plans.
Appointed just last Monday, Lombard joins Prime Minister François Bayrou’s government at a critical juncture, as France seeks to balance fiscal discipline with economic resilience.
