France’s Young Finance Minister Faces Tough Fiscal Challenges

PARIS (Reuters) – France’s newly appointed finance minister, Antoine Armand, has been tasked with steering the nation out of a significant fiscal hole amid growing investor concerns over debt.

Armand, a 33-year-old ally of President Emmanuel Macron, was appointed finance minister over the weekend. Just a day after, France’s 10-year bond yield was nearing that of Spain’s, which is typically viewed as riskier, for the first time since late 2007.

“I understand these questions,” Armand said during an interview with France Inter radio. He acknowledged concerns regarding his youth and limited experience, noting that government work brings certain habits that he is still acquiring.

Teaming up with new Budget Minister Laurent Saint Martin, who is 39, Armand faces the challenging task of addressing France’s growing budget deficit, which is expected to approach 6% of GDP. “We have one of the worst deficits in our history, so the situation is serious,” he remarked.

When asked about the country’s chances of meeting its budget deficit projection this year, Armand did not provide a definitive answer, saying he was collaborating with the budget minister on a “credible” updated estimate that will be released soon.

Last week, France’s chief auditor informed lawmakers that the finance ministry’s existing forecast of a 5.1% GDP deficit was unrealistic due to decreased tax income during the economic slowdown and insufficient public sector savings.