French Deficit Could Overshoot 3% of GDP

There is a risk that France’s public deficit could overshoot the EU deficit limit of 3% again in 2017, Prime Minister Edouard Philippe said on Tuesday, Reuters reported. Earlier in June, France’s central bank said that the public finances were on course for a deficit of 3.1% of economic output this year, higher than the 2.8% predicted by the previous government. That would mean France would miss the 3% EU deficit limit. Former president Francois Hollande had promised it would be respected this year for the first time in a decade. The government of new President Emmanuel Macron has said it would take corrective measures if needed. The national audit office is due to review official estimates in July. France’s central state budget deficit—which doesn’t include the accounts of local authorities and social security—was €57.9 billion ($63.2 billion) at the end of April, the budget ministry said. It stood at €56.5 billion at the end of April 2016.