EU Finance Ministers to Approve France’s Deficit-Cutting Plan

BRUSSELS (Reuters) – European Union finance ministers are set to approve French Prime Minister Francois Bayrou’s deficit-cutting plan on Tuesday. This approval comes as it aligns with the EU’s recommendations to reduce the French deficit to below 3% of GDP by 2029, according to officials.

Senior officials from EU governments expressed their support for Bayrou’s plan last week, which is designed to replace the previous, more aggressive scheme proposed by his predecessor, Michel Barnier. Barnier’s plan was originally rejected by the French Parliament in December.

The new plan aims to lower France’s budget deficit from 6.2% of GDP in 2024 to 5.4% in the current year. While Barnier sought a more substantial reduction to 5.0% of GDP in 2025, both plans ultimately share the same goal of reaching 3% of GDP by 2029, a key condition for the EU’s approval by the European Commission.

“The new plan stays within the requirements of the Commission,” stated an EU diplomat involved in discussions.

“The most important part is that the Commission diligently monitors the implementation of the plan and enforces rules if the French budget deviates from the set boundaries,” the diplomat added.