France’s current budget plans are “broadly” in line with its European commitments, the European Commission said in a report.
“France, which is required to correct its excessive deficit by 2017, is projected to meet the intermediate recommended headline targets for 2015 and 2016,” the commission said on Tuesday. “It does not yet ensure a timely correction of the excessive deficit by the 2017 deadline.”
Commission approval of French budget plans has been rare in recent years, as a stalled economy has crimped tax income and President Francois Hollande has struggled to impose spending cuts. France has currently budgeted for a deficit equivalent to 3.8 percent of gross domestic product in 2015 and 3.3 percent in 2016.
Even so, such positive analysis may be short lived. Hollande announced Monday that he will allow the deficit to widen so the government can increase spending on security in the wake of terrorist attacks that left 129 dead in Paris on Friday.
“The security pact is more important than the stability pact,” Hollande said.