France Will Miss on 2013 and 2014 Deficit Targets

France Budget Deficits

France says will meet its deficit target in 2014 | Reuters.

According to the rosy European Commission forecasts, France will have a deficit of 3.7% this year.  The deficit was t least 5.2% of GDP for 2012, so the EC is expecting France to decrease its deficit almost 30% in a year where its economy will remain stagnant in the best case scenario.  In fact, current PMI numbers favor a recession in France:

France February PMI

The article fails to mention that Moscovici was guaranteeing that France would meet its 3% deficit target in 2013 just a few weeks ago.  He is now backpedaling and has pushed off compliance until 2014.

With the French economy entering a recession, attaining the goal of a 3% budget deficit must be put off indefinitely.


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