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France provides adjustment of €20.0B euros in 2014
FXstreet.com (Barcelona) - The French government announced today introduced in the Council of Ministers a new multi-year plan that will involve budgetary adjustment in the order of €20.0B in 2014, aimed at mitigating the mounting deficit and consolidating domestic public finances.
The breakdown of allocation during the period 2013-2017 will be presented to Brussels later this month and contains approximately €14.0B in spending cuts along with an increase in tax revenues of about €6.0B. Hollande's government expects the budget deficit this 2013 is above the intended target, at 3.7%, though considers that it fulfilled in 2014, when he would stand at 2.9%. The indicator would drop also in 2015, towards 2%, rising to 0.7% in 2017.
It is also estimated that France's public debt will continue to grow and reach 94.3% next year, however this will begin to decrease from 2015.
