The Minister of the Economy, Bruno Le Maire, on Sunday announced new savings in response to the slowing growth globally, particularly in Europe and China. He stated that French growth will be revised down from 1.4 to 1% in 2024.
This revision necessitates an additional 10 billion euros in savings this year to maintain the public deficit at 4.4% of GDP in 2024, down from the projected 4.9% for 2023. There’s a risk of France’s rating being lowered by rating agencies if there’s any slippage, especially before the European elections in March.
Thomas Cazenave, the Minister of Public Accounts, echoed this message, emphasizing that the 10 billion euros in State savings this year demonstrate France’s commitment to managing its public finances responsibly.
The minister asserted that the government is taking proactive measures in response to the slowing growth and is committed to building a responsible, efficient state.
To achieve this, Cazenave proposed several cost-cutting measures, including reducing state purchases by 750 million euros, shrinking state office space by nearly 25% by 2030, cutting travel by public officials by 20% next year, and saving 700 million euros on personnel expenses next year by delaying recruitment.
Cazenave also suggested postponing some projects, such as those funded internationally through public development assistance, the Personal Training Account (CPF), and MaPrimeRénov’. However, he confirmed that the budget for MaPrimeRénov’ will continue to increase, albeit at a slower rate.
Regarding the CPF, Cazenave stated that those who benefit from the 2 billion euro system will be asked to contribute. He mentioned that this decision was made in 2023 and will be implemented this year.
