Hollande Deficit Delay Brings No Market Risk, Economists Say
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French President Francois Hollande’s push to slow the pace of deficit reduction is unlikely to trigger any increase in borrowing costs, according to economists surveyed by Bloomberg News.
Since a rout in municipal elections March 27, Hollande has named a new government and signaled that France would like to push back the date for bringing down its budget shortfall to 3 percent of gross domestic product for a third time in an effort to nurture the nation’s fledgling economic recovery. Manuel Valls, Hollande’s new prime minister, said this week that he wants to trim spending by 50 billion euros ($61 billion) by 2017 and lower taxes on both businesses and households.