France will tear according to the government, 2019, with its budget deficit to the EU ceiling. The deficit will be in the coming year expected to be around 3.2 per cent, said Prime Minister Edouard Philippe in a Sunday Interview published in the newspaper “Les Echos”. Thus, the deficit would be above the EU limit of three percent of economic output. This is contrary to the Maastricht criteria, which were established in 1992. They are intended to prevent the States fault excessively.

Edouard Philippe (l.)

President Emmanuel Macron, the ongoing protests of the so-called yellow West facing, has recently made concessions, and tear a hole of tens of billions of euros in the budget.

Because of these concessions by Macron is also the Parliament President Richard Ferrand for the coming year, the European deficit limit of three percent of the GDP at risk. Ferrand said the “Journal du Dimanche” and that he expected a deficit of 3.4 percent of gross domestic product. The concessions Macrons are likely to tear a hole of tens of billions of euros in the draft budget of the government.

As should this:

Overtime, Employees will no longer get taxed an annual premium, without the state collects taxes on minimum wage earners a Supplement of a maximum of 100 Euro in the month of pensioners receive only 2000 euros pension (so far, from 1200 euros), higher social security contributions.

the measures are to low profit earners and pensioners. How targeted the plans are, however, controversial. The standard of living in France is high, as is the perceived injustice in the country for many French people. This can be seen in the world of work. As in Germany, in France, a two-class society. Who has a permanent contract of employment is well protected and difficult to notice. Many French people move from one temporary contract to the next, often with low pay. Macron said in his recent speech: “We want a France in which one can live worthy of his work.”

Emmanuel Macron (R)

France had met in the past year, for the first time since 2007, the deficit rule of Maastricht. In 2016, France was still 3.4 per cent in the Minus. Marcon was actually taken, the credibility of the EU to regain. The debt of the country is still high, and He climbed up to 2017, from 96.6 percent to 97 percent of the economic power. With the concessions to the yellow West, this credibility is now back on the game.

Economic Problem, not a structural

the President of Parliament Ferrand, the high deficit, defended with the note that it was a cyclical, not a structural phenomenon. The economy Ministry in Paris did not want to comment on the Statements. Before the beginning of the wave of protests against high living and fuel prices, had planned to France a deficit for 2019 from 2.8 percent of GDP, after 2.6 percent this year.

EU economy Commissioner Pierre Moscovici had said on Thursday, Exceeding the deficit target in France could be tolerated, as long as it was a temporary Problem.

Still, four weeks ago, the EU warned-Commission countries, such as Belgium, Portugal, Slovenia, Spain and France – because of their budget plans. The five countries should ensure the necessary measures to ensure that their budget plans for the 2019 in line with the stability and growth Pact.

face a deficit procedure?

another deficit-the candidate is Italy. The EU Commission has called for a deficit procedure against the country. Reason is the planned borrowing in the Italian budget for 2019. Italy met the EU requirements for a debt reduction in his Budget for 2019. The Commission therefore concludes that the opening of proceedings was justified because of an excessive deficit, which can lead to fines in the billions. The European Finance Ministers must agree with that, however.

The method provides first of all an “early warning” (“Blue letter”). Thereafter, a formal excessive deficit procedure can be initiated if the Council of EU Finance Ministers decides by qualified majority. The member state concerned shall submit to the EU Commission a Plan to implement the measures within a period of six months and its budget deficit will reduce. The member state does not comply with the recommendations, may be imposed by the Council sanctions.


Sam Yoon has many years of experiences in journalism. He has covered such areas as information technology, science, sports and politics. Yoon can be reached at 82-2-6956-6698.