MNI BRIEF: Talks On France Budget Promising - EU Gentiloni
MNI (BRUSSELS) - EU Economy Commissioner Paolo Gentiloni said Monday that he has had "promising" talks with new French Finance Minister Antoine Armand on the newly unveiled French draft budget for 2025. The budget foresees a budget deficit at 5% of GDP next year, falling to below the EU 3% limit only by 2029.
Gentiloni said the Commission had been in technical discussions with the French government on its 2025 budget and on its medium-term fiscal plan since last week. Turning to the economic outlook for the EU, Gentiloni said that despite the souring growth picture the Commission's Spring forecast of Euro Zone growth at 0.8% was likely to be little changed in its autumn forecast due in mid November. (see MNI POLICY: EU Likely To Ease Debt Reduction Rules )
He noted the big rise in oil prices as a result of rising tensions with Iran and said it could have implications for inflation, although this was not yet the case.