Financial pressure of the epidemic: France reports a deficit of 220 billion euros

As a result of the new epidemic, France’s national budget deficit has increased significantly, rising to about 220 billion euros in 2021, compared to 173.3 billion euros projected in the original budget law (LFI). The French social security and local government deficits are not included in the calculation.

France’s state budget deficit will rise to “about 220 billion euros” in 2021, French Public Budget Minister Olivier Dussop reported Saturday. The minister said the nearly 47 billion euro increase in the budget deficit is the result of France continuing to take aid measures to best match the economic recovery” amid the epidemic.

According to Public Budget Minister Olivier Dussopt and Economy Minister Bruno Le Maire, in an interview with the Echo on Thursday, the government will submit on June 2 a bill to consolidate the finances (PLFR), which includes 15 billion euros of additional emergency measures that will be used in particular to finance some activities and to targeted assistance to companies in difficulty.

According to data released Friday by France’s National Institute of Statistics (INS), France’s growth in the first quarter missed its original forecast, with gross domestic product (GDP) falling 0.1 percent, compared to an initial assessment of 0.4 percent growth.

Olivier Dussopt also did not give a new assessment of the public deficit, which should also include the social security deficit and the deficit of local authorities.

According to AFP, the public deficit forecast so far is 9 percent, which is expected to increase France’s public debt to 118 percent of GDP, an unprecedented level. Since the start of the New Coronavirus outbreak, France has taken a stance of implementing measures at all costs to support economic activity and employment.