France's public sector budget deficit widened in 2023 by more than the government had planned, according to data released on Tuesday by statistics agency INSEE.
This means there was a greater gap between income and spending, throwing Macron's reputation as a fiscally stable president into doubt.
The deficit can largely be explained by France's lower growth figures last year, which reduced tax revenue.
The rate of spending expansion also eased only moderately last year, rising by 3.7%, following a rate of 4% in 2022.
France's Finance Minister, Bruno Le Maire, warned earlier this month that the country had overshot its deficit target, stressing that more funds need to be found to meet the limit of 4.4% of GDP for the coming year.
By 2027, France is seeking to bring its deficit to under 3% of national output to stay in line with EU goals.
Where will funds come from in 2024?
The government has already pencilled in €10 billion of emergency spending cuts for 2024, and they're hoping to save €12 billion in 2025.
Budget Minister, Thomas Cazeneuve, has even suggested that next year's saving target will have to be pushed up to €20 billion.
"State finances must be readjusted," said Finance Minister Le Maire on Tuesday, adding: "that will require a great deal of determination, strategy, and composure."
In order to plug the gap in the budget, Le Maire nontheless showed his opposition to a tax increase.
"It is perfectly possible to reduce public spending without dipping into the pockets of French people, and I remain... totally opposed to an increased tax burden on our citizens who already pay high taxes."
More to follow...
