LFrance’s public deficit reached 5.6% of GDP in 2023, while a deficit of 4.9% of GDP was expected. This deterioration of public finances comes from weak growth, the decline in tax revenue from VAT and corporate taxes; it compromises the entire trajectory of reducing public deficits. If France’s growth remains close to 1% until 2027, the public deficit will not be 2.7% of GDP in 2027, but it will probably still be higher than 4.5% of GDP.
A consensus has emerged behind the idea that, with this poor situation of public finances, it is necessary to take measures in France either to reduce public spending or to increase the tax pressure in order to avoid a crisis linked to the excess of deficits…
