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France has narrowed its budget deficit, but how does it compare to other EU states?

  • 29. Mar 2023. 7:32
  • By The EU Times
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The French government has been working hard to reduce its budget deficit in recent years, but how does it compare to other European Union (EU) countries?

According to the European Commission (EC), the French budget deficit was 3.5 percent of its GDP in 2020, a significant improvement from the 5.1 percent of GDP recorded in 2019.

This reduction in the budget deficit was achieved through a combination of tax increases and spending cuts. The French government was able to reduce public spending by 3.2 percent of the GDP, while raising taxes by 1.7 percent.

The French government's efforts to reduce the budget deficit have been praised by the EC, which noted that France has been able to reduce its deficit without compromising economic growth.

However, France's budget deficit still remains higher than the EU average of 2.8 percent of GDP. In comparison, Germany has a budget deficit of 1.8 percent of GDP, while Spain and Italy both have deficits of 5.2 percent and 9.5 percent, respectively.

The French government has set a target of reducing the budget deficit to 2.8 percent of GDP by 2022. To achieve this goal, the government has proposed a range of measures, including increasing the taxation of multinational companies, reducing the tax burden on individuals, and introducing a new wealth tax.

It remains to be seen whether or not France will be able to meet its target, but it is clear that the country has made progress in reducing its budget deficit. If successful, it could set an example for other EU countries to follow.