IMF calls on France to “adjust its fiscal policies to reduce budget deficit” – Last Minute Economy News

The International Monetary Fund (IMF) has published a report on the financial situation of France, which has spent billions of dollars to save businesses and families affected by the energy crisis.

In the report, which calls on France to review its financial situation and consolidate its economy since the start of 2023, France has spent more than 2 percent of its GDP in one year due to a freeze in electricity and gas prices , energy controls, fuel discounts and the support provided to companies, he recalled.

The report stressed that government support to prevent unemployment and business closures, saying “whatever it takes”, is a difficult burden on the public budget, severely disrupted by the Covid-19 pandemic.

In the report, entitled “Support to the 2 crises and the epidemic whose impact has diminished, France needs to consolidate the public budget for 2023”, it was emphasized that Paris has instead postponed the reduction of the budget deficit to 2024.

IMF UPLOADS ITS ESTIMATE OF GROWTH FOR FRANCE IN 2023 AT 0.75 PERCENT

The report says the government expects a 5% deficit next year after this year’s 4.9% budget deficit, and underlines that the Paris goal is to reduce this deficit to 3% only by 2027, contrary to its neighbors who act kakım soon kakım possible.

In the report, which notes that the IMF left its 2023 growth forecast at 0.75 percent due to the extension of energy measures and tax cuts applied to companies, it also refers to the fact that a postponement of energy support and tax cuts would significantly reduce the budget deficit.

The report also recommends that the IMF focus on reducing the retirement age, completing unemployment reform, moderating spending, including on fossil fuels and housing, and structural reforms in public services.

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