France has asked the European Commission to extend beyond September 20 the deadline for submitting a plan to reduce its budget deficit to comply with the draft Paris budget for 2025, a newspaper reported today "Tribune du Dimanche", referring to the Ministry of Finance, quoted by BTA.
If no further savings are found, France's budget deficit could widen unexpectedly this year and next, the finance ministry said in a letter to lawmakers earlier this month, as the eurozone's second-largest economy slumps in a deeper political crisis, notes Reuters.
The worsening financial situation has thrown Paris into the EU's disciplinary process and faced tough questions for incoming prime minister Michel Barnier as he seeks to form a new government and prepare a budget by October 1, with the threat of a parliamentary vote hanging over him. of distrust.
"France has requested such an extension," the finance ministry said, without specifying how much time it had requested. This is necessary to "guarantee the coherence of the plan and the draft budget for 2025," the ministry added.
An EC spokesman said that September 20 was set out in the rules, but member states could agree with the EC to extend this deadline by a reasonable period of time. "At this stage we cannot confirm whether we have received the request," the spokesman said.
The budget deficit means Barnier's new government could face a tough choice between spending cuts and tax hikes, or losing confidence among France's EU partners and financial markets.
On Thursday, Macron appointed Barnier, 73, a conservative and former European Union Brexit negotiator, as prime minister, ending a two-month search after his decision to call a parliamentary election that ultimately led to the election of parliament.
Yesterday Barnier said that he cannot work miracles and that he wants to restore order to France's finances.