Hollande Concedes that France Will Not Reach 3% Deficit Target

President François HollandePhoto: flickr.com/jmayrault

President François Hollande
Photo: flickr.com/jmayrault

Following the European Commission’s economic estimates last month regarding Europe’s economies, François Hollande has announced that France will officially miss its goal to reduce the deficit to 3% from the current 4.5% for the 2013 fiscal year.  This is a particularly rough blow to Hollande, who centered his election campaign on the promise to reach this deficit target.

Instead, France’s deficit is expected to be lowered to 3.7%.  France is not alone in missing the European Commission’s requirements. Greece, Ireland, and Portugal are also struggling to recover from the recession that has plagued Europe for past several years.

France is under particular scrutiny, because unlike Greece, Ireland, and Portugal, the government has chosen not to adopt austerity measures.  Instead, the government raised taxes rather than cut spending on social programs.  These economic policies have come under fire for not being effective enough to push the French economy into recovery.  A German European Central Bank board member, Jens Weidmann, commented on the matter in an interview with BBC, stating that “the reform course in France seems to have floundered.”

Hollande, on the defensive, was quick to point out that since becoming president, he has lowered the deficit from over 5% in 2011 under his predecessor, Nicolas Sarkozy. In spite of this progress however, France still faces serious economic problems, with over 3 million of its citizens unemployed, urging the president to enact more effective measures to help the economy towards recovery.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: