Emmanuel Macron forecasts a clear improvement in French economic growth in the second half of 2024 and defended his supply-side policies, saying he wants to stay on track with reforms to restore public finances in an interview published Wednesday by L’Express.
“From a growth perspective, the second half of 2024 should be much better. Moreover, inflation has fallen very quickly, much faster than in the past. (…) And this is without entering into a recession,” said the President of the Republic.
“No reduction in government spending”
After 2.5% in 2022, gross domestic product (GDP) growth slowed sharply last year to 0.9% amid inflation and high rates. In the first quarter of 2024 it reached 0.2%.
Lower-than-expected revenues pushed the government deficit to 5.5% of GDP in 2023, up from the 4.9% expected. It is expected to reach 5.1% by 2024, exceeding the original target of 4.4%.
“Apart from the shift in originally planned expenditures, which is due to the fault of local authorities, there is no lag in public spending, its budget is even quite underspent,” said Emmanuel Macron.
He reiterated his commitment to reducing the government deficit below the 3% of GDP threshold in 2027, in line with European standards.
Public spending savings of €10 billion have already been achieved by 2024, and the government intends to make further cuts of €10 billion.
“Was there a need to change policy? The answer is no. Consistency, consistency, confidence: we are staying the course because our strategy is correct,” said the French president, defending his economic reforms and his political strategy, characterized in particular by tax cuts.
The French choose France
“We are going to continue the same policy with the goal of resuming deficit reduction in the coming years, returning to below 3%, as planned at European level, by 2027 and starting to reduce debt,” he said. – he continued.
Despite deteriorating public finances, Emmanuel Macron repeated his promise to cut taxes for the middle class by 2 billion euros in 2025.
The President of the Republic also welcomed the record 15 billion euros of foreign investment to create 10,000 jobs, recorded last week at the 7th Choose France summit at the Palace of Versailles.
“At the same time, there is a real policy of reindustrialization and investment on the part of French companies,” he stressed, referring to Blue Solutions, a subsidiary of the Bolloré group, which will build a battery plant in the east, or the pharmaceutical group Sanofi, which will build a plant to produce batteries in the east. invest one billion euros in Vitry-sur-Seine (Val-de-Marne).
Emmanuel Macron announced, without further details, the upcoming launch of a “Choose France” summit dedicated to French companies investing in France “to better promote this choice of French production site.”
He concluded by stating that “ten new factories will emerge from the ground in the coming months”: these are French start-ups, SMEs and ETIs, winners of the latest wave of the “First Factory” competition for projects in the France 2030 plan, which aims to encourage innovation.
These plants will, in particular, produce “carbon-free steel” in Fos-sur-Mer (Provence-Alpes-Côte d’Azur), “composites” in Pont-Saint-Maxence (Hautes-de-France) or Avrilles (Payments de France). Loire) “or even engines for satellites” in Palaiseau (Ile-de-France), Emmanuel Macron listed.
Source: Le Parisien
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