French Finance Minister's Priority to Reduce Public Deficit

By David Lawder

WASHINGTON (Reuters) – French Finance Minister Antoine Armand stated on Friday that France's primary fiscal goal is to reduce its public deficit to a targeted 5% of GDP by 2025, following a credit rating warning from Moody's.

Moody's revised France's outlook to "negative" from "stable," citing uncertainty about the country's ability to manage its increasing budget deficits.

Speaking to reporters at the International Monetary Fund and World Bank annual meetings in Washington, Armand acknowledged the negative outlook and emphasized that necessary measures were already being taken to control debt.

Armand highlighted the importance of fostering growth in order to address deficits and finance investments essential for the country's clean energy transition.

He reiterated that reducing the debt and budget deficit is not only a financial goal but also a political one, indicative of the public finance consolidation aimed for in France.

When asked about the upcoming U.S. presidential election and the potential for high U.S. tariffs on European goods under Republican candidate Donald Trump, Armand refrained from commenting.

However, he stressed the need for France, the U.S., and other nations to coordinate their policies against non-market trade practices, particularly those of China, sharing U.S. concerns in this regard.

"We need to coordinate responses against non-market practices to avoid disorder and imbalances," he said.