EU facing CIVIL WAR: France admits budget BLACK HOLE over Macron’s protests CAVE IN…(Just Now Getting Systems To Work…)
FRENCH Finance Minister Bruno Le Maire confirmed France would exceed the European Union’s budget deficit ceiling next year after President Emmanuel Macron gave in to anti-government street protests.
By ROMINA MCGUINNESS
Express.co.uk
Thu, Dec 13, 2018
The French government has been forced to cave in to the demands of “yellow vest” protesters, who were calling for tax cuts and income increases amid rising living costs. Mr Le Maire told MPs: “With the additional expenses, we are going to overshoot the three percent [of gross domestic product (GDP)] limit and want to take every necessary measure to keep us as close as possible to three percent … and to our European commitments. We will take measures designed to curb public spending and [increase] tax receipts. The latter can be done by specifically asking big companies to contribute. I’m in favour.”
Mr Macron’s use of government largesse to calm agitated “yellow vest” militants against his pro-business reforms is expected to leave a 10 billion euro (8.64 billion pounds) hole in the Treasury’s finances.
The concessions, which include the rolling back of a carbon tax on fossil fuels, the increase in the minimum wage and tax cuts for cash-stripped pensioners, have put the budget deficit on course to hit 3.5 per cent of GDP in 2019.
France’s 2019 budget had been already judged at risk of non-compliance by the European Commission last month, before the planned additional expansionary measures.
However, failure to respect the EU deficit ceiling could trample on France’s fiscal credibility with its European partners after Paris flouted it for a decade before Mr Macron took office.
And any weakening of restraint in spending policy undermines Mr Macron’s pledge he could reshape state finances.
But the response from the Commission has been understanding – unlike for Rome, as Italy’s populist government was quick to point out.
The Rest…HERE
