EUROPEAN FISCAL
AFT (French Treasury) Issues the following regarding state funding for 2025 (with an update for 2024), reflecting the French Budget Bill for 2025 which was presented to the Council of Ministers today. Judging from the modest move higher in OAT futures (22 ticks to 125.95 high), the announcement overall was in line with expectations and relieves some uncertainty over the fiscal situation.
- In sum, France's financing needs are set to total E307B in 2025, compared with E319B in 2024, with E41.3B in spending cuts vs E19.3B tax hikes in 2025 as part of the Government's effort to get the deficit below 5% of GDP. See AFT table graphic below.
- The 2024 deficit financing requirement was upped nearly E20bln to E166.6B vs the initial budget set last December. BTFs outstanding will amount to E35.3B, vs E5.2B initially planned, though issuance of M-T/L-T debt net of buybacks remains unchanged at E285B.
- For 2025, the total financing requirement is down nearly E13B vs the 2024 updated financing requirement, to E306.7B - reflecting both a E31B lower deficit projection and just under E20B increase in M-T/L-T debt redemptions. 2025 M-T/L-T issuance (net of buybacks) is upped E15B to E300B vs 2024, with the 2024 increase in bills partially reversing (net negative E1.5B vs E35B seen in the 2024 revised budget).
- Official link here for full details from AFT
220 words