2024-12-10 17:55:10
Economy
Finance
Europe

No Financial Crisis Looming in France Amidst Budget Challenges

In the aftermath of France's recent governmental shake-up, German Finance Minister Jörg Kukies expressed confidence that a financial crisis is not imminent in the neighboring country. Kukies noted that the markets have remained calm, with significant investments being made in newly issued French government bonds, suggesting stability. The French economy is expected to grow by 1.1% this year, surpassing Germany's forecasted contraction of 0.1%.

Despite the apparent calm, the European Union is urging France to address its budget deficit and overall debt. The new EU Economic Commissioner, Valdis Dombrovskis, emphasized the need for France to set its deficit and debt on a downward trajectory. France's current deficit, projected at 6.2% of its GDP, significantly exceeds the EU's recommended maximum of 3%, ranking as the second highest in the EU after Romania.

The previous French government, led by Prime Minister Michel Barnier, had planned to reduce the deficit by €60 billion through spending cuts and tax increases. However, these measures led to a vote of no confidence and the subsequent fall of the government. In light of these developments, Paschal Donohoe, head of the Eurogroup, remains optimistic, expressing "absolute confidence" in France's ability to resolve its budgetary challenges.

While focusing on France, Kukies also reassured that Germany's financial situation is under control, with sufficient revenues to meet obligations. However, the German government is preparing for provisional budget management in 2025 due to a lack of parliamentary majority, highlighting the broader fiscal challenges facing European economies.

EURACTIV.com
10. Dezember 2024 um 06:13

Eurogroup chief expresses ‘absolute confidence’ in resolution of French budget crisis

Politics
Economy
Finance
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n-tv.de
10. Dezember 2024 um 10:09

Kukies: "Revenues are sufficient": Finance Minister sees Germany's finances "well under control" - n-tv.de

Economy
Finance
Politics
Federal Finance Minister Jörg Kukies sees Germany's finances "well under control"; Revenues are sufficient to meet obligations; The traffic light coalition had planned a supplementary budget, which, however, was not passed; For 2025, the federal government is preparing a provisional budget management; The Bundestag has to decide on proposals for cold progression, an increase in child benefit and the promotion of electromobility; The current government no longer has a majority in the Bundestag;..
EURACTIV.de
10. Dezember 2024 um 11:24

Fiscal Crisis: Eurogroup Chief Has 'Absolute Confidence' in France

Politics
Economy
Finance
Paschal Donohoe, the Chair of the Eurogroup, has expressed 'absolute confidence' in France, despite its high debt and rising deficit. The French National Assembly toppled the government of Prime Minister Michel Barnier. The European Commission and finance ministers are discussing France's budget situation.
gmx
10. Dezember 2024 um 14:57

Finance Minister: We Must Tighten Our Belts

Economy
Finance
Politics
Hesse's Finance Minister Alexander Lorz announces savings; Framework conditions such as a weakening economy and declining tax revenues require consolidation; Postponement of salary increases for state civil servants and non-filling of every third vacant position are expected to save 180 million euros; Withdrawal of 500 million euros from the reserve; Investments of 3.3 billion euros are planned, among other things for the Hessengeld and Hessenfonds.
CW

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