EURACTIV logo

Hollande pledges €4bn in ‘new savings’ to meet EU deficit target

AFP and EURACTIV.com

04-03-2015

François Hollande

French President François Hollande [Présidence de la République]

French President François Hollande said Wednesday (4 March) his government would find €4 billion in “new savings” this year to meet demands from Brussels.

“If Brussels asks for 4 billion more to respect our obligations in reducing the public deficit, they will be found with new savings,” said Hollande in an interview with daily Le Parisien.

Last week, the European Commission gave France two more years to bring its deficit under the limit of 3% of GDP, but set strict levels that must be achieved along the way.

The Commission ruled that France’s budget for 2015 would not be enough to achieve a reduction of 0.5 percentage points in the deficit this year, and demanded a further €4 billion in savings.

>> Read: EU gives France to 2017 to cut deficit, Italy, Belgium in clear

Hollande also promised “there will be no tax rises in 2015, 2016 and 2017” and that the process of lowering charges for businesses would continue.

He also criticised tax avoidance efforts by large business groups, such as Total.

“Total, which is the biggest French group, should be the biggest French contributor,” he said.

Background

The European Commission granted France until 2017 to bring its budget deficit below the EU limit of 3% of GDP after Paris missed an already extended 2015 deadline.

In return, Paris must commit to rapid and ambitious economic reforms, the Commission said on 25 February.

Brussels said it expected to receive a new programme of structural reforms from Paris by April, despite the recent adoption of the controversial Macron economic reform bill.

>> Read: Brussels demands more ambitious reforms from France

Since 2001, France had a deficit below 3% only in 2006 and 2007 and has repeatedly missed consolidation deadlines.

Fiscal hawks, including the the German centre-right MEP Herbert Reul (CDU), said they were "disappointed" with the new deadline extension.

>> Read: German centre-right ‘disappointed’ over extension of French deficit deadline

Timeline

  • By mid-April: EU countries, including France, expected to present National Reform Programmes
  • May: EU Commission to present a new set of country-specific recommendations

Further Reading

European Commission

EURACTIV's editorial content is independent from the views of our sponsors.

Do you value EURACTIV’s reporting? We need your support.

Dear reader,

Media is a pillar of democracy – as long as it can function properly. Now more than ever we need unbiased, expert information on how and why the European Union functions. This information should not be behind a paywall, and we remain committed to providing our content for free.

We know our readers value our reporting. We know journalism that covers the EU in a clear, unbiased way is critical to the future of the European Union.

And we know your support is critical for ensuring this independent and free journalism.

Don’t take the media sector for granted. It was already fragile before the coronavirus pandemic. And as people can’t meet, media companies have lost a major source of revenue: events. EURACTIV is supported by a mix of revenue streams including sponsorships, online advertising, EU-funded projects, and policy debates. All of these sources of revenue are impacted by the current crisis. 

 

While media struggles, disinformation thrives. We are already seeing fearmongering, fake news about the EU response, and increased threats to freedom of the press.


For more than two decades we have provided free, independent, multilingual reporting on the European Union. We continue to believe in Europe, and we hope you do too. 

Your financial support at this critical time will allow our network of newsrooms across Europe to continue their work when Europe needs it most.

Support EURACTIV Media Network for Europe and CONTRIBUTE today. 

Topics  

Subscribe to our newsletters

Subscribe
Contribute