France's Budget Deficit: Balancing Act Ahead

French Prime Minister Sebastien Lecornu unveiled his ambitious plan on Friday to trim France's burgeoning budget deficit. By 2026, he aims to reduce it to 4.7% of GDP and further to 3% by 2029, marking a significant fiscal commitment by his government.

Lecornu made it clear that the reintroduction of a wealth tax is off the table. Instead, he advocates for changes in how the tax burden is distributed, although he refrained from providing detailed measures. His approach suggests a focus on equitable tax reforms without burdening the wealthy.

While acknowledging the looming risk of budgetary standoff, which could escalate the deficit to 6%, Lecornu confidently dismissed fears about France's debt situation, assuring that institutions like the IMF are not a current concern for France.

(With inputs from agencies.)