France’s Gaping Budget Hole Leaves Macron Strategy in Doubt

Deficit hit 5.5% of GDP in 2023 versus 4.9% government target
Data undermine president’s bet on growth-boosting reforms

WATCH: The gap between French income and outlays expanded to 5.5% of GDP in 2023, far wider than the 4.9% the government planned for in its budget. Alan Katz reports.Source: Bloomberg

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By William Horobin

March 26, 2024 at 6:32 AM UTC

Updated on

March 26, 2024 at 10:06 AM UTC

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France’s budget deficit is slipping away from the government’s control, undermining President Emmanuel Macron’s credibility as an economic reformer capable of resolving the country’s fiscal challenges.

Official figures on Tuesday showed the gap between income and outlays expanded to 5.5% of economic output in 2023 from 4.8% in the previous year, far wider than the 4.9% the government planned for.