PARIS, June 29 (Reuters) - France’s new government must rein in spending by billions of euros in coming months to live up to its deficit-cutting promises, the public audit office said on Thursday.
Elected last month on pledges to reform the economy, President Emmanuel Macron faces a first major test to find the extra savings deemed necessary by the Cour des Comptes, after the last government overspent the budget in its final months.
Unless cuts are made, the public sector deficit will come to 3.2 percent of economic output this year, exceeding the previous Socialist-led government’s 2.8 percent target.
New savings of up to five billion euros ($5.7 billion) would be required if Macron’s government is to respect its pledge to post a deficit of 3.0 percent or less this year, honouring an EU-agreed limit for the first time in a decade.
$1 = 0.8776 euros Reporting by Leigh Thomas; Editing by Laurence Frost