France: Fiscal deficit right at the 3% threshold – BNP Paribas

In 2019, France’s fiscal deficit came to 3% of GDP, which is good news, according to Hélène Baudchon from BNP Paribas.

Key quotes

“In 2019, according to the preliminary INSEE estimate, France’s fiscal deficit came to 3% of GDP, which is good news, if only slightly better than the government’s target of 3.1% of GDP.”

“In the 2020 amended draft budget bill presented on 18 March, the government now expects the deficit to swell to 3.9% of GDP.” 

“The expected deterioration in France’s 2020 deficit falls well outside of the European fiscal guidelines, but it is not problematic. What is alarming is the underlying economic situation.”