November 28, 2024 16:38 GMT
FRANCE: Barnier Committed To Bringing 2025 Deficit To "About" 5%
FRANCE
Latest headlines from French PM Barnier, speaking to Le Figaro.
- "*FRENCH PM: WILL DO EVERYTHING TO BRING 2025 DEFICIT TO ABOUT 5%" bbg
The use of "about" from Barnier is key here. A reminder that budget minister Saint-Martin said on Monday that the "aim for next year's deficit is still to come as close to 5% as possible but one should not be too strict about it to allow for room for reaching political agreements".
- The electricity tax concession announced today provides one source of potential fiscal slippage versus the draft budgetary plan's projections, and RN leader Bardella's call for more concessions keeps the risk of further slippage at the fore.
- Limited reaction in the 10-year OAT/Bund spread to these latest headlines. The spread is 3.5bps tighter today at 82bps at typing,
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