Title: Budget 2024: The government’s ambitious objectives for the economy and public finances
Introduction
In a context of post-crisis economic recovery, the French government faces several major challenges for the coming year. The Minister of Economy and Finance, Bruno Le Maire, presented France’s 2024 budget, which aims to reconcile the need to reduce the country’s debt, fight inflation and invest in the energy transition. This article highlights the government’s ambitious goals and the measures planned to achieve them.
A triple challenge to take up
France’s 2024 budget sets three major objectives. The first is that of deleveraging the country, faced with a debt which exceeds 3,000 billion euros. The government plans savings of around 16 billion euros as well as a new tax on motorways to reduce the debt. The second challenge concerns the fight against inflation, particularly in the context of soaring prices at the pump. Measures are being considered to protect the purchasing power of the French, in particular compensation of 100 euros for the most modest households. Finally, the third challenge concerns investment in the energy transition. The government wants to reduce exceptional measures supporting the electricity bill, while encouraging businesses to adopt more sustainable practices.
The responsibility of the majority in the face of parliamentary debates
Despite these stated ambitions, the government faces turbulent parliamentary debates. Deprived of an absolute majority in the Assembly, he could be forced to resort to article 49-3 of the Constitution to have the budget adopted. Bruno Le Maire therefore calls on the majority to show responsibility and to speak with one voice during these debates. It is crucial for the government to guarantee the credibility of its measures in order to obtain a favorable verdict from the rating agencies.
Rigorous management of public finances
At the heart of the 2024 budget is rigorous management of public finances. The government plans to reduce state spending from 496 to 491 billion euros, while aiming to reduce the deficit from 4.9% of GDP this year to 4.4% in 2024. However, the High Council of Public Finance considers this figure optimistic, and it will be necessary to monitor developments closely to achieve these objectives. Furthermore, the country’s debt will remain high, reaching 109.7% of GDP in 2024, well above the European limit of 60%.
Conclusion
France’s 2024 budget aims to be ambitious in its objectives of reducing debt, fighting inflation and investing in the energy transition. Despite the difficulties looming in Parliament, the government shows its determination to implement these measures. It is essential to find a balance between rigorous management of public finances and protection of the purchasing power of the French. The success of these objectives will be a key indicator for the economic health of the country and its credibility on the international scene.